After hitting the $30,000 mark recently, the price of Bitcoin has faced retracements with a decline of 9%. Concurrently, Ether has faced a decline of 14% after peaking above $2,100. Taking into account the technical aspects, bitcoin's breach of the $30,000 mark has been accompanied with a move towards the lower range of Bollinger Bands, which suggest an impending bounce.

Bollinger Bands are an analysis tool used to determine the support and resistance levels in the market. It is mainly used to calculate two standard deviations above and below an asset's 20-day moving average. In this case, it suggests that over 98% of the time, Bitcoin’s price will remain in the band, implying that it is headed towards a rebound.

Furthermore, the recent decline in BTC’s Relative Strength Index (RSI) is indicative of a decline in momentum, having dropped from 71.54 to 42.53. Going by historical data, bitcoin’s RSI has sat between 42 and 45, 163 times, with an average 30-day performance of 6% following these occurrences.

CoinDesk’s Bitcoin Trend Indicator has also declined from 0.5 to 0, which shows that bitcoin’s price is likely to make a slow and steady rise back to its 20-day moving average. This average is approximately 6% above its current price and could be achieved in coming days or weeks.

Thus, even though there is a huge volatility in the value of Bitcoin, over time it is expected to level to its normal performance and regain lost ground. When this will happen is hard to determine but it is likely that Bitcoin could be positioned for a rebound in the near future.



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