It's hot outside and it looks like Bitcoin has pulled out to take a nap, the price of bitcoin has been low for days. This could change in the coming weeks. In price analysis, we are not only interested in short-term development, but also in long-term development.
Bitcoin still in the triangle
We have often pointed to the triangle in which Bitcoin is currently located. It is still relevant today. In the short term, little has changed since the last price analysis of the triangle. The price of bitcoin always evolves between two trend lines forming a triangle. In the graphics, these lines are orange. Each candle represents a period of four hours.
The question remains: will the price come out of this triangle up or down? In mid-September, the corner of the triangle is reached. In the most boring case, we have to wait until then to find an answer to the question.
What will happen to Bitcoin this year?
If Bitcoin, as expected, will stay between these lines, it will not be as exciting in the coming weeks. That's why we are now considering a longer timeframe.
Below you see two things. In the top graph you can see the price in Bitcoin in Euro. Each candle represents a week in this chart, but we also chose a longer period (from 2017 to now).
Below you can see the MACD. MACD stands for "Moving Average Convergence / Divergence" (in German: moving average / divergence indicator). This indicates the difference between the moving average. In most cases, this also indicates the direction of a trend. In other words, green represents an upward trend, while red indicates a downward trend.
At the beginning of 2018, the MACD was red. It also ushered in the bear market. Even now, you can see a negative divergence. But that does not necessarily mean a renewed bear market, because we talk about "bearish crossing" in a brief change between green and red. In a bull market, a bearish cross may actually indicate a temporary minimum. After that, the course usually goes up again. Has the price of Bitcoin now reached a low point? This scenario seems possible.
Image via Unsplash
Corinna is the editor-in-chief of Coinwelt. Since 2016, his world is based around crypto-currencies and blockchain. No day goes by without Corinna being bored for not investing in Bitcoin the first day. She finds the international legal situation particularly interesting for currencies such as Bitcoin. For the future, she hopes for a positive attitude from lawmakers and clear laws on the treatment of digital parts.