Crypto Daily – In the short-term time frames (BTC) is starting to look overbought. However, in the weekly time frame, there are signs that upside price momentum may be returning.
Stochastic RSI – short-term signals
The Stochastic RSI is a price momentum indicator that signals overbought and oversold conditions. Looking at the Stochastic RSI for the 4-hour, 8-hour, 12-hour, and 1-day time frames, all have their indicators at the top, pointing to all of them potentially coming down over the next several days, leading to a dip in price.
It is important to bear in mind though that sometimes the Stochastic RSI lines can hang around at or near their tops for extended periods of time before coming back down.
Huge BTC buy for U.S. Spot Bitcoin ETFs
Aside from the technical analysis indicators, the actual buying and selling of Bitcoin took a change on Friday as the U.S. Spot Bitcoin ETFs recorded the 5th largest net inflow with purchases totalling 9.36K BTC, equivalent to $907.30 million. If there is a return to purchases on this kind of scale, one can possibly expect prices to soon get back to the 108,000 all-time high and beyond.
Price boost into Trump inauguration
Donald Trump’s inauguration as the next President of the United States is now only two weeks away. The kind of positive climate for crypto that this will liberate can not be underestimated. If the short-term price dip does materialise for Bitcoin, it may well be that the next price increase happens going into the inauguration event, giving it an extra boost.
BTC price continues to respect ascending trendline
Source: TradingView
The daily chart for $BTC shows that generally the price has been going sideways over the last couple of months. The price appears to be respecting and staying above the ascending trendline from 2021. Any break and confirmation below this line would therefore be a cause for concern.
Looking at the Fibonacci levels, it can be seen that the price has just touched the 0.5 Fibonacci, and at the same time, has made a very slightly local higher high. With the Stochastic RSI at its top, there may be a pull-back from here. That said, if one looks left to where the price first got above the ascending trendline, the Stochastic RSI was in fact decreasing. This tells us that this indicator is less reliable, the lower the time frame.
Weekly RSI shaping to cross back up
Source: TradingView
It is on the weekly time frame that the most interesting move in the Stochastic RSI can be noted. It can be seen here at the bottom of the chart that the blue fast line is bending up, having potentially found support at the 0.50 midpoint of the indicator. It is now shaping to cross back above the orange slow line. If this takes place, probably at the end of this week, much larger momentum will once more be under the $BTC price, pushing it upwards.
Huge price momentum coming from monthly Stochastic RSI
Source: TradingView
Looking at the monthly chart, it can be seen that there aren’t any false indications in the Stochastic RSI. Currently, the indicator lines are heading to the top. Once they both cross the 0.80 level, the momentum increases to its maximum. With the blue line already crossing, next week should see a cross for the orange line as well. It’s then that potentially the last explosive stage of this bull market can take place.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
