The Bitcoin and cryptocurrency markets are very volatile and, according to a new study, are incredibly unpredictable and seem to move independently of the more traditional or expected indicators.
Bitcoin Price to USD Dominant Trend: Bullish
Supply Levels: $8800, $8900, $9000
Demand Levels: $7600, $7500, $7400
After ten days of consolidation, Bitcoin finally manages to break the supply area from $8200 to $8300. Since the critical demand was evaluated at $7,400, Bitcoin has recorded four consecutive days of gains, while the coin continues to follow the upward trend line in the medium term (indicated in orange on the 4-hour chart). In the recent analysis, the importance of BTC staying above the aforementioned area of $7,400 was highlighted and that, in this case, the coin could go much higher. The bullish sentiment comes from the stochastic RSI oscillator: recently, it crossed across in the oversold zone and was currently entering the overbought zone, the bullish territory. Looking at the chart, the price of Bitcoin shows positive signs above the demand levels of $8,000 and $8,100. In the short term, there may be some fluctuations, but the price must maintain the demand of $8,000. While BTC exceeds $ 8,000, it could continue to rise even more.
Also, looking at the 4 hour chart, for the demand/supply; At the top, after breaking the zone between $8200 and $8300, which includes the MA-100 of the 4-hour chart (indicated by a purple line), Bitcoin now faces supply levels of $8800, $8900, $9000 and the peak of 2019 around $9100 – $9200. From the bottom up, the closest level of demand is now the supply transformed to demand level at $8,000 – $8100. Below lies the area of $7600 to $7700. Further below lies $7,500 and strong supply at $7400 (last week’s low). Recently, the price of Bitcoin has formed a larger demand base at the level of $7,600 against the US dollar. The BTC/USD pair began to increase steadily and exceeded the supply levels of $7,800 and $7,900. As a result, the bulls gained strength above the $7,900 level and the 100-day moving average. This opened the door to more profits above the main supply levels of $8,800, $8,900 and $9,000.