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Following the Bitcoin (BTC) price increase above $94,000, Tony Severino, a CMT-verified analyst, launched an in depth technical evaluation outlining a transparent technique for navigating the subsequent main transfer. Because the Heikin Ashi month-to-month candle flashes bearish alerts, the analyst shares the perfect time to purchase Bitcoin, warning traders of potential bear market traps.
Higher Bollinger Band Reveal Time To Purchase Bitcoin
Severino has provided an in-depth examination of the Bitcoin market, figuring out exact circumstances underneath which traders and merchants, together with himself, would possibly take into account re-entering primarily based on key market indicators and worth motion. The analyst broke down a Bitcoin price chart that includes month-to-month candlesticks, Bollinger Bands, and historic comparisons.
Associated Studying
The chart highlights that in late 2021, after hitting its earlier ATH, Bitcoin touched the Upper Bollinger Band however failed to shut above it. On the time, this transfer was perceived as a traditional non-confirmation, which in the end led to a pointy reversal and brutal bear market in 2022.
Quick ahead to in the present day, Bitcoin is hovering above $94,000, with the Higher Bollinger Band positioned at $108,000. In keeping with Severino, merely reaching this Higher Bollinger Band degree, because it did in 2021, shouldn’t be sufficient purpose to purchase Bitcoin in anticipation of a worth improve. As a substitute, the analyst asserts {that a} full month-to-month shut above $108,000 is required to verify a breakout and continuation of the bullish trend.
The analyst additionally disclosed that he would take into account shopping for Bitcoin as soon as it closes sufficiently above this degree. Nonetheless, if the flagship cryptocurrency fails to shut above the Higher Bollinger Band for a month, it might mirror the 2021 double high and pretend breakout, doubtlessly main to a different steep bear market this cycle.
General, Severino advises traders to carefully watch Bitcoin’s price action round this key Bollinger Band. He stresses that capital preservation far outweighs succumbing to the Fear Of Missing Out (FOMO). With elevated dangers and rising volatility, the analyst believes that clear confirmation signals are the one approach to have interaction with the market safely.
BTC’s Heikin Ashi Candle Flips Bearish
Whereas Severino confirms the ideal time to buy BTC, the analyst additionally announced that the Bitcoin Heikin Ashi candles have turned bearish. The analyst shared a 12-week Heikin Ashi candlestick chart, which exhibits Bitcoin flashing early warning indicators of a possible bear market.
Associated Studying
The chart highlights a vital second the place Bitcoin’s Heikin Ashi candle turned crimson for the primary time since its earlier worth peaks in 2014, 2018, and 2022. Traditionally, such a sign has marked the start of extended bear markets and deep price corrections.
Additional strengthening the bearish outlook, Severino identified that the Fisher Transform, a technical indicator used to detect development reversals, is exhibiting a bearish crossover, with the inexperienced Fisher line dropping under the crimson Set off line. In earlier cycles, every time these two alerts — the Heikin Ashi and Fisher Rework — aligned, Bitcoin skilled substantial declines that lasted for months, if not years.
Featured picture from Pixabay, chart from Tradingview.com