It’s not a fowl, and though it’s been hovering, it isn’t a airplane both. It’s Bitcoin and the most recent bull run simply hit its first wall after over a whole yr in an uptrend.
The rally was stopped by a “Super” promote sign appearing as dynamic resistance, leaving BTC probably at risk of reversal.
Bitcoin Braces For The Worst After Reaching Downtrend Resistance
Bitcoin worth has given purchase alerts galore since reached a backside in late 2022. All through 2023, BTCUSD rallied more than 300%. However regardless of the climb, on larger timeframes such because the month-to-month, promote alerts stay intact.
One such sign exists on the 1M SuperTrend – a strong trend-following technical indicator created by Olivier Seban. Utilizing CME BTC Futures, there has solely ever been one promote sign generated on the 1M timeframe, and it nonetheless stands regardless of BTCUSD smashing proper into it this month.
Bitcoin smashes into SuperTrend resistance | BTCUSD on TradingView.com
Promote Sign Stands In The Approach Of New Crypto ATHs
The SuperTrend marks a worth chart with a dynamic assist and resistance line. When worth penetrates via the road on a closing foundation, the promote sign modifications to a purchase and vice versa.
The software is so correct, downtrend resistance is at present positioned at $44,621, which is only a few hundred {dollars} greater than December 2023’s shut round $44,200.
Bitcoin made one other try at smashing via SuperTrend downtrend resistance, however continues to commerce beneath the span. Closing above the SuperTrend line in January could be a notable win for crypto buyers. Nonetheless, a breakout might arrive later in February or March after some sideways consolidation beneath resistance.
Might this sign trigger the mid-cycle correction? | BTCUSD on TradingView.com
Why The Purchase Sign Might Trigger A Mid-Cycle Correction
Upon zooming out, it’s straightforward to see that passing via the SuperTrend on the 1M timeframe in BTCUSD may not be the fast-track to new all-time highs that it sounds prefer it may be.
Traditionally, after the SuperTrend has given a purchase sign, a mid-cycle correction units Bitcoin again by months. However this usually has occurred solely after the purchase sign is generated. Might this time be completely different?
Charts featured on this article initially appeared within the CoinChartist VIP 2024 preview and subject #32: This Time It’s Different.
