InvestorCrypto.net - According to top trader Josh Olszewicz, Bitcoin may be at another bearish reversal point.
The indicator consists of five different lines, two of which form a cloud (which can be either red or green). The blue line seen on Olszewicz's chart is called the "conversion line" or "Tenkan line."
This represents the average over the past nine periods. It can be compared to a simple moving average, but with higher precision.
The red line is called the "baseline" or "Kijun line." This indicates the midpoint price from the previous 26 periods. If the price of Bitcoin falls below the Kijun line, it signifies a bearish bias.
As noted by Olszewicz, Bitcoin has just experienced its first Kijun tap since the breakout in early June. Although the top cryptocurrency price can still recover from here, traders argue that the previous "triple top" structure actually indicates a bearish reversal.
As reported by U.Today, Bitcoin recently experienced extreme volatility due to geopolitical tensions. After falling to $61,514, Bitcoin has managed to reduce some losses, currently trading at $64,251.
In particular, around $1 billion worth of crypto has been liquidated in the last 24 hours. It should also be mentioned that the thickness of the cloud directly correlates with momentum strength. In mid-December, for example, the red cloud was thinning out, which signaled the start of another downward trend. Bitcoin is up 73.74% year-to-date.
In conclusion, Bitcoin's current position suggests a bearish trend based on technical indicators and market analysis.
Traders are closely watching key support levels and indicators such as the Kijun line to predict potential price movements.
Geopolitical tensions continue to impact the cryptocurrency market, leading to increased volatility and uncertainty. Investors should exercise caution and closely monitor market developments to make informed decisions. As always, it is advisable to conduct thorough research and seek advice from financial experts before making any investment decisions.
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