The price made another rebound today, breaking again the $40,000 resistance level and trying to climb towards the first recovery level at $44,000. At this moment, the price holds around $41,000 but the action during the day is expected to increase at higher levels.
If the price manages to reach the $44,000 level, we believe that the resistance would be much weaker as the resistance levels are falling when they are tested multiple times. The expectations for larger volatility are higher at this moment but the news and the stories will give us the final call for the overall direction in the market structure.
The moving averages moved to bullish positioning while the trading volumes have increased a little bit, showing some action from the investors’ perspective.
In the day-trading window, the signal was ready to get off some hours before the price explosion. The bullish signal occurred a couple of hours before so any move from now on and for the next hours will be on the rise.
As we have mentioned in previous analyses, the peak for the short-term bullish signals is after 8 – 10 hours when the signal took place. If the bullish action lasts for more, we can expect that the $44,000 point will be touched during the day. This scenario could become a reality if we heard some positive news during the day as an announcement from US Fed or something similar.
In this case, indicators manage to predict the price surge more accurately than the market charts.
MACD index (Moving Average Convergence Divergence) showed that the change in the short-term momentum had started from yesterday and the market was ready for take-off. This has happened several times in the past and this is why we should compare signals from different sources.
The RSI index had been more bullish since March 7th, showing that the consolidating market could produce several consequential signals with established accuracy. The fact that the index has not reached a sell signal yet is positive for the market development over the next hours.
As you see on the chart of this Binance Coin Price Analysis the rebound in the Binance Coin market was not as high as expected. The delay in the price development is evident at altcoins when they wait to observe the situation in the Bitcoin market before they make a decisive move on their own.
The goal at $400 remains the short-term goal but the double peak was made at $440. This means that the market has more fields to cover before having any thoughts for a new recovery process.
This parallel channel between $360 and $440 could become a similar situation for Bitcoin’s consolidation, another signal that the market remains integrated and more and more are following a specific trend, based on Bitcoin’s movements.
The moving averages have remained close enough for touching each other again and again, providing multiple signals. The trading volumes remain on the same spot, showing stability from investors’ perspectives.
The consolidation trend is much more evident in the short-term window when the price remained between $360 and $400 for the last three weeks. This consolidation could bring more power for the next move as is indicated from the technical analysis theory.
The expectations will remain higher in the short-term window as long as Bitcoin continues to thrive, even between the consolidation points.
MACD index (Moving Average Convergence Divergence) remained on the “green” side, showing that the market momentum lies on the positive side, without giving more insights about what can go in that direction.
The RSI index (Relative Strength Index) reached value = 50, predicting that the market will remain on the same spot for the next period and any uptrend or downtrend could reverse back to the mean, at $400.
In the day-trading window, 3 out of 4 signals were proven right for now. Especially, the last bullish signal produced a 5 % return in just 8 hours. This means that the consolidating market is giving more opportunities for day-traders.
We can also observe that the market changed momentum when 2 consequential, bold moves shake up the day trading process and increase volatility. This action made the market change direction and follow a bullish path for now.
In this Binance Coin Price Analysis you can find the MACD index managed to produce the “buy” signal at the same moment with the moving averages, showing that this index could act as a confirmed signal for the main market.
The RSI index didn’t manage to set a “buy” signal as there was a lot of the previous action before. This could be a confusing moment for those investors that follow blindly any signals for the market. Again, we should be careful about how we follow signals and we should always compare indicators between them.
Bitcoin has made a rebound to $41,000, on the path to $44,000, the first recovery point. The market will become more volatile in the next few days as the turbulence from the Ukraine front doesn’t seem to be towards a resolution.
In this Binance Coin Price Analysis BNB has followed the same pattern with Bitcoin, but with a less exciting reaction. This means that a delay could affect the BNB market and make it surge at second time. All of the above would be interesting to observe in the next few days.
Read our previous Bitcoin Price Analysises here!
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
