Is It the End of the Road for This Bitcoin Bull Run? This Alarming Indicator Implies So
According to renowned trader Josh Olszewicz, the Bitcoin market could be heading towards another bearish reversal. Olszewicz points to a specific indicator consisting of five lines, two of which make up the cloud and can be either red or green.
Highlighted in Olszewicz’s chart is the blue line known as the “conversion line” or “Tenkan” line. This line represents the average for the last nine periods and offers a higher level of precision compared to regular moving averages.
Meanwhile, the red line, called the “base line” or “Kijun line,” depicts the midpoint price of the previous 26 periods. If Bitcoin’s price drops below the Kijun line, it suggests a bearish bias.
Olszewicz observes that Bitcoin recently tapped the Kijun line for the first time since its breakout in early June. Although there is still potential for the top cryptocurrency to recover, the trader argues that the preceding “triple top” structure indicates a looming bearish reversal.
Bitcoin has been experiencing significant volatility due to geopolitical tensions, with its price dropping to $61,514 before partially recovering to its current value of $64,251. Notably, approximately $1 billion worth of cryptocurrency has been liquidated in the past 24 hours.
Furthermore, the thickness of the cloud directly correlates with the momentum’s strength. For instance, when the red cloud started thinning in mid-December, it foreshadowed the initiation of another downtrend. Despite this, Bitcoin’s year-to-date performance still shows a remarkable increase of 73.74%.
In conclusion, the prevailing indicator suggests that the current Bitcoin bull run might be coming to an end. However, market conditions are ever-changing, and the cryptocurrency’s future trajectory remains uncertain.