Bitcoin Weekly Stochastic Oscillator has moved out of the sell-off or below 20 levels and has started to move upwards, which is a positive sign for Bitcoin in the short term.
to the the report New analysis shows that bitcoin and Ethereum price charts will continue to rise after a month of stagnation, and digital currencies are likely to have a chance to breathe in the coming weeks.
Katie Stockton, founder and CEO of Fairlead Strategies, tweeted that Bitcoin’s weekly stochastic oscillator had moved upwards from the under-20 saturation zone, signaling an uptrend. It is short-term.
Experienced traders use the stochastic oscillator along with other indicators to detect sell-off and buy-saturation conditions, which act as a signal to enter short and long trades. Being below 20 (percent) indicates saturation of sales and above 80 (percent) indicates saturation of purchases.
In his weekly research note, Stockton noted that the positive turn of the weekly stochastic oscillator for bitcoin was accompanied by a buy signal on the daily and weekly charts of the DeMark Indicators.
As defined by the website Inostopedia (Investopedia), Dimark indices compare the closest ceiling and floor prices to the corresponding prices in the previous period to measure the current demand for the asset in question.
With these interpretations, it seems that Bitcoin is ready for a significant rise due to the easing of sales pressure. The market-leading digital currency is currently trading at a high of $ 40,000 at its highest level in 2.5 weeks.
According to Stockton, the initial resistance of Bitcoin will be around $ 47,000, which if this level is crossed, it will be possible for the currency to climb further. Meanwhile, Pankaj Balani, CEO of Delta Exchange, predicts that new sellers will enter the range above $ 45,000.
Changes in price chart indicators could also benefit the market’s second-largest digital currency, ether. “Stockton said about this:
The amount of daily and weekly stochastic oscillators has increased, supporting a short climb and an initial ether resistance test of around $ 3,000.
The second largest currency in the market since late May (early June) has repeatedly faced strong resistance in the range of 2,800 to 3,000. Ether currently trades above $ 2,500.