Bitcoin's technical analysis sparks optimism for a price increase.
Following the past week’s developments, our outlook on the short-term future of the crypto market is currently somewhat mixed.
From a purely technical analysis perspective, the situation shows some promising signs.
When viewed on a daily chart, the price of Bitcoin, the largest cryptocurrency, is at the lower end of its recent multi-month range (1). After a couple of down days, Tuesday’s daily candle displayed a long wick, which often signals a trend reversal—in this case, a shift from decline to rise. Since Tuesday, we have indeed seen 1.5 days of solid gains. This, in turn, is reflected in the Relative Strength Index (RSI) rising above its signal line, which itself has also turned upward (3).
Technical analysis provides reasons for optimism. So why are we still cautious despite these signals?
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