Bitcoin Price Short-Term Indicators Hinting at $7.4K Weekend Bounce
Cointelegraph By filbfilb's original article for cointelegraph.com reduced by 73%
The price of Bitcoin has headed north over the last 24 hours, up over 1% at $7,272. Despite a strong finish to the week, the price of Bitcoin is down 3.2% from the opening of $7,520 on Monday morning. The daily timeframe shows that Bitcoin price is still supported by the point of control at $7,200; the price where the most volume has traded in recent times.
The 4-hour MACD and RSI are both showing signs of a trend change to the upside, which implies that price may go higher over the weekend. Since weekend price action has a history of quickly reversing into the new week any weekend opportunity may be short-lived. The CME futures are currently trading with a small premium over spot prices whereas they've been trading with a discount in the week prior, implying that traders are generally neutral on the future price of Bitcoin versus today.
The Bitcoin Fear and Greed Index meanwhile shows that the move down to the middle of the range at $7,000 has helped shift sentiment to an Extreme Fear score of 22.Historically there has been a correlation between low sentiment scores and reversal in price, but typically these reversals are seen when the index score is below 20 as was seen for a sustained period between December 2018 and January 2019.Looking forwardOverall, there as some signs that Bitcoin may be in the early stages of reversing the downtrend that looks to be losing momentum.
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CN [too long; didn’t read]
Summarised crypto news.