Bitcoin’s price has been stuck between $90,000 and $100,000 for a while now. This has some traders feeling bearish, thinking the peak might be in. But hold on! There’s reason for optimism.
The Monthly Stochastic Indicator: A Bullish Signal?
Crypto analyst Tony “The Bull” Severino points to a key indicator: the monthly stochastic oscillator. This tool measures market momentum, and for Bitcoin, it’s still above 80. Historically, this level has been a strong signal of upward momentum, preceding significant price increases.
Severino highlights that Bitcoin has held above this 80 level during previous bull runs (2017, 2020, and early 2024), consistently bouncing back and continuing its upward trajectory. This suggests the current price action, while showing some hesitation, isn’t necessarily a sign of a downturn.
Doji Candlesticks: A Sign of Indecision?
Another interesting observation is the appearance of doji candlesticks on Bitcoin’s monthly chart. These candles show indecision in the market – neither buyers nor sellers are clearly dominating. Interestingly, doji candles appeared during the previous bull runs mentioned above, right around the time the price was testing the 80 level on the stochastic indicator. The current doji suggests a period of uncertainty before a significant move, either above $100,000 or below $90,000.
What’s Next for Bitcoin?
Currently, Bitcoin is trading around $97,000, up 2% in the last 24 hours. While the recent price action has been somewhat flat, the combination of the high stochastic reading and the presence of a doji candlestick suggests that the bullish trend might not be over yet. Severino previously predicted a potential price target of $178,000 for Bitcoin. Whether this prediction will come true remains to be seen, but the current technical indicators offer some reason for bullish sentiment.
