Three Bitcoin Indicators That Suggest The Bottom Is In
Bitcoin has hit numerous strong support zones that could change the direction of the current trend
While the crypto market is going through a strong correction phase, numerous indicators suggest that the bottom may already be in.
Ichimoku cloud is one of the most widely used cryptocurrency indicators in the market that reflects both the support and resistance zones and determines the current trend in the market. While Bitcoin’s daily chart suggests that the leading cryptocurrency is in bad shape, the situation on the weekly chart is different.
Source: Trading Display
According to the situation on the weekly chart, Bitcoin is currently trading at the bottom of the Ichimoku cloud, which often acts as a strong support zone. The most recent Bitcoin bounce occurred on January 24, when the price reached the mentioned support.
Local Bitcoin Bottom
While technical indicators can be a great way to pinpoint resistance points or changes in the trend, the asset’s previous price action could give us a hint as to the future moves of digital gold.
According to past price movements, Bitcoin has consolidated and has risen from $34,800, which can be considered the bottom for a current correction rally.
100-week moving average
While 50 and 200 candle moving averages are much more commonly used than the 100 candle moving average, it can still act as a strong support and resistance point.
According to the Bitcoin weekly chart, the 100-week moving average is currently acting as a support for the price. Since the moving average also correlates with the Ichimoku cloud’s support zone, Bitcoin may begin to consolidate in the $34,000-$36,000 zone.