BTC Rises from the Ashes

Crypto Compass 30

“The phoenix must burn to emerge.” - Janet Fitch

• Why: Bitcoin’s Bollinger bands pretty much reflect the current state. As price rises strongly as excitement increases, volatility returns to the scene, with bitcoin hitting new highs and lows.

• Conclusion: BTC is still on the rise. However, we must consider the expanding bands (higher volatility), which could lead to abrupt moves as BB width reaches the highest point in months. Volatility could be the impulse to $35k or the path to a hard bottom.

Figure 1: The graph shows BTC price with its respective Bollinger Bands, the Relative Strength Index and the width of the bands.

• The Bitcoin Risk Signal is back in the elevated zone (less than 25), as bitcoin’s upward momentum follows a boost in institutional interest from major players. This could strengthen BTC’s price rise and use volatility as momentum to break the current resistance levels.

• Risk signal is within the elevated zone, but we could see a retrace as the price cools off. RSI is overbought, and a break below 70 would indicate that momentum is fading. In that case, it’s best to wait for 29.2k ($29.26k) to hold. If RSI stays above 70, we’re in an extreme bull market19:34

Figure 2: Bitcoin Risk Signal is a proprietary signal that gauges the amount of risk of a major drawdown in bitcoin price.