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Following the Bitcoin (BTC) price increase above $94,000, Tony Severino, a CMT-verified analyst, launched an in depth technical evaluation outlining a transparent technique for navigating the following main transfer. Because the Heikin Ashi month-to-month candle flashes bearish indicators, the analyst shares the best time to purchase Bitcoin, warning traders of potential bear market traps.
Higher Bollinger Band Reveal Time To Purchase Bitcoin
Severino has provided an in-depth examination of the Bitcoin market, figuring out exact situations beneath which traders and merchants, together with himself, would possibly take into account re-entering based mostly on key market indicators and value motion. The analyst broke down a Bitcoin price chart that includes month-to-month candlesticks, Bollinger Bands, and historic comparisons.
Associated Studying
The chart highlights that in late 2021, after hitting its earlier ATH, Bitcoin touched the Upper Bollinger Band however failed to shut above it. On the time, this transfer was perceived as a traditional non-confirmation, which finally led to a pointy reversal and brutal bear market in 2022.
Quick ahead to at this time, Bitcoin is hovering above $94,000, with the Higher Bollinger Band positioned at $108,000. In keeping with Severino, merely reaching this Higher Bollinger Band stage, because it did in 2021, is just not sufficient cause to purchase Bitcoin in anticipation of a value enhance. As an alternative, the analyst asserts {that a} full month-to-month shut above $108,000 is required to verify a breakout and continuation of the bullish trend.
The analyst additionally disclosed that he would take into account shopping for Bitcoin as soon as it closes sufficiently above this stage. Nonetheless, if the flagship cryptocurrency fails to shut above the Higher Bollinger Band for a month, it may mirror the 2021 double high and pretend breakout, doubtlessly main to a different steep bear market this cycle.
Total, Severino advises traders to carefully watch Bitcoin’s price action round this key Bollinger Band. He stresses that capital preservation far outweighs succumbing to the Fear Of Missing Out (FOMO). With elevated dangers and rising volatility, the analyst believes that clear confirmation signals are the one strategy to interact with the market safely.
BTC’s Heikin Ashi Candle Flips Bearish
Whereas Severino confirms the ideal time to buy BTC, the analyst additionally announced that the Bitcoin Heikin Ashi candles have turned bearish. The analyst shared a 12-week Heikin Ashi candlestick chart, which reveals Bitcoin flashing early warning indicators of a possible bear market.
Associated Studying
The chart highlights a important second the place Bitcoin’s Heikin Ashi candle turned pink for the primary time since its earlier value peaks in 2014, 2018, and 2022. Traditionally, such a sign has marked the start of extended bear markets and deep price corrections.
Additional strengthening the bearish outlook, Severino identified that the Fisher Transform, a technical indicator used to detect pattern reversals, is exhibiting a bearish crossover, with the inexperienced Fisher line dropping beneath the pink Set off line. In earlier cycles, at any time when these two indicators — the Heikin Ashi and Fisher Rework — aligned, Bitcoin skilled substantial declines that lasted for months, if not years.
Featured picture from Pixabay, chart from Tradingview.com
