Last night, Bitcoin was stuck between 58,000 and 59,000, but today Sol rebounded to around 132. Let's analyze it from the candlestick chart today. 😀
Technical Analysis
1. Bollinger Bands
Current Status: BTC price recently touched the lower Bollinger Band and rebounded, and is currently running below the middle Bollinger Band. The rebound after touching the lower Bollinger Band indicates that there may be signs of an oversold rebound in the short term. However, the price is below the middle band, and the overall trend is still biased downward.
Analysis: The price rebounded near the lower Bollinger Band, indicating that there is a possibility of an oversold rebound in the short term. However, the price has not yet broken through the middle band, indicating that the overall downward pressure still exists.
2. Moving Average (MA) Short-term MA (7 and 25):
The current 7-day MA is 66,382.72, and the 25-day MA is 63,432.95. The short-term MA shows that the price has rebounded in the short term.
Long-term moving average (99 days): The 99-day MA is 63617.59, indicating that the long-term trend is still downward.
3. MACD (Moving Average Convergence Divergence)
MACD line and signal line: If the MACD line runs below the signal line, it indicates that the market is still in a downward trend. It is necessary to observe whether there are signs of a golden cross. If a golden cross is formed, it can be used as a signal to buy or reverse trade.
4. RSI (Relative Strength Index) Current RSI value: If the RSI is below 30, the market is oversold and a technical rebound may occur. If the RSI rises above 30, the rebound signal is stronger.
5. Volume Current volume: Observe the changes in volume. During the rebound, if the volume increases significantly, it indicates that buying interest has increased and the rebound may continue.
Medium- and long-term strategies
Observe reversal signals:
If MACD forms a golden cross (MACD line crosses the signal line upward) and RSI rises above 30, it may indicate a market reversal and you can consider a reverse trade (from short to long).
Focus on key support and resistance levels:
Support level: $60,000. If the price falls below this support level, it may fall further.
Resistance level: $63,000. If the price breaks through this resistance level, the rebound may continue.
