Prominent trader Josh Olszewicz believes that there may be another negative reversal in Bitcoin imminent.
Five lines make up the indication, two of which make up the cloud (which can be either green or red).
The “conversion line” or “Tenkan” line is the blue line that is visible in Olszewicz’s graphic. It stands for the mean over the previous nine sessions. Its accuracy is higher than that of normal moving averages, yet it can be equivalent to them.
The red line is referred to as “Kijun line” or “the base line.” It displays the average price for the preceding twenty-six periods.
A decline in the price of Bitcoin below the Kijun line indicates a negative tendency.
Olszewicz said that Bitcoin had its first Kijun tap since the early-June breakthrough. The trader claims that the previous “triple top” pattern really suggests a bearish reversal, even if the price of the leading cryptocurrency may still rise from here.
Geopolitical concerns have caused considerable volatility in Bitcoin recently, as reported by U.Today. Bitcoin has recovered somewhat after its collapse to $61,514 and is now trading at $64,251. Notably, throughout the last day, cryptocurrency worth almost $1 billion has been liquidated.
It’s also important to note that the strength of the momentum is directly correlated with the cloud’s thickness. For example, the red cloud was beginning to diminish in mid-December, which was ahead of the onset of another decline. As of now, Bitcoin has increased by 73.74% year to date.
