These 3 Bitcoin indicators say that a new BTC price movement is ‘imminent’
Bitcoin (BTC) is showing signs that fresh BTC price gains are imminent, according to a long-term market participant.
In a Dec. 27 post on X (formerly Twitter), businessman and popular social media analyst Matthew Hyland predicted “imminent” bullish moves.
Trader on BTC price: “Move looks inevitable”
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin may have marked Christmas as low as $41,650 – but the tide could soon turn.
For Highlander, two key BTC price indicators point the way for a short-term reversal.
These, which come in the form of Bollinger Bands and Relative Strength Index (RSI), have given advance notice in recent months.
“Daily Bollinger Bands are back to compressing the last two moves to levels that bring them to the highs of $30k and $40k. The daily RSI is at a 2-month low, and the 3-day MACD is currently crossing over with less than 3 days to decline,” he wrote.
“It seems that action here is very close.”
Bollinger bands narrow
Bollinger Bands are a popular volatility indicator that closely tracks BTC price action and indicates when volatility is likely to occur.
Currently, the daily timeframe bands are narrowing after a period of expansion – something that, although not immediately, heralds a new round of volatility.
Earlier this year, the band narrowly missed out on a recovery above $30,000, Cointelegraph reported.
Hyland has posted an accompanying chart showing how tight the bands are currently.
RSI avoids “oversold” levels
The Relative Strength Index (RSI) proved a reliable tool for Bitcoin traders during the Q4 bullish comeback.
The classic momentum oscillator, which gives insight into how BTC/USD is overbought or oversold, has seen something of a reset on daily time frames in the second half of December.
Now at 53, the RSI is below the “overbought” line of 70 and even below the month-to-date high of 76.
Longer timeframes are also promising, as noted by veteran trader Peter Brandt last week.
Some analysts say Bitcoin is overbought. In fact, the monthly RSI is currently in the sweet spot where previous bull markets have accelerated their growth. Not predicting this — just suggesting. #bitcoin $BTC $BTCUSD pic.twitter.com/XBrDYMKaMc
— Peter Brandt (@PeterLBrandt) December 21, 2023
“The daily RSI is currently at a more than two-month low; when the price was below $27k,” Hyland added, in a separate X post.
MACD is bearish.
One other indicator, however, could throw a spanner in the works for Bitcoin bulls as the new year approaches.
Related: BTC Price Up 160% in 2023 — 5 Things to Know in Bitcoin This Week
This is the moving average converging divergence (MACD), which is threatening a reversal of opinion on a three-day time frame.
Hyland noted that thanks to the price action, the signal will have several days to “counteract” itself.
“The cross was 100% accurate throughout the year to lows and highs,” added part of the comment on Dec. 27.
#Bitcoin 3-day MACD is currently crossing down.
The next 3-day candle closes in 3 days so you don't accept the price in 3 days
The cross was 100% accurate throughout the year leading to low and high prices.
The last bull cross happened around $27k which we updated at the time https://t.co/wffcBEa2Y9
— Matthew Hyland (@MatthewHyland_) December 27, 2023
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
