Bitcoin bulls continue to be demoralized, as the price per coin grinds continuously at lows for what feels like an infinite amount of time. However, a bottom could be forming, according to an indicator that has reached historical lows not seen since the 2015 bear market bottom.
What followed the last signal, was 10,000% returns and Bitcoin became forever became a household name. While such returns aren’t likely a second time, such oversold conditions could yield some significant, unexpected upside. Here is a closer look at the 3-day Stochastic on BTCUSD price charts.
The Stochastic Oscillator Explained
The Stochastic oscillator is a a range-bound momentum indicator that uses support and resistance levels, created by investment educator George Lane in the 1950s. According to Wikipedia, “The term stochastic refers to the point of a current price in relation to its price range over a period of time. This method attempts to predict price turning points by comparing the closing price of a security to its price range.”
Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What Comes Next For Crypto?
The formula provides an asset’s price expressed as a percentage of its price range between 0% and 100%. The goal of the Stochastic – often called Stoch for short – is to spot when prices close near the extremes of a recent range. It is at this point where reversals are most likely to occur. Simply put, the lower the reading, the more oversold and the more likely a bounce is due. The higher the reading, the higher the likelihood of a rejection due to overbought conditions.
BTCUSD saw 10,000%+ ROI following the low | Source: BTCUSD on TradingView.com
Bitcoin Bulls Attempt To Put In A Bottom
Currently, Bitcoin price on 3-day timeframes is at the lowest point in its entire history. The only other time as low, was at the 2015 bear market bottom. A second-bottom followed in the months after, followed by price appreciation upwards of 10,000%. From a…
Bitcoin bulls continue to be demoralized, as the price per coin grinds continuously at lows for what feels like an infinite amount of time. However, a bottom could be forming, according to an indicator that has reached historical lows not seen since the 2015 bear market bottom.
What followed the last signal, was 10,000% returns and Bitcoin became forever became a household name. While such returns aren’t likely a second time, such oversold conditions could yield some significant, unexpected upside. Here is a closer look at the 3-day Stochastic on BTCUSD price charts.
The Stochastic Oscillator Explained
The Stochastic oscillator is a a range-bound momentum indicator that uses support and resistance levels, created by investment educator George Lane in the 1950s. According to Wikipedia, “The term stochastic refers to the point of a current price in relation to its price range over a period of time. This method attempts to predict price turning points by comparing the closing price of a security to its price range.”
Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What Comes Next For Crypto?
The formula provides an asset’s price expressed as a percentage of its price range between 0% and 100%. The goal of the Stochastic – often called Stoch for short – is to spot when prices close near the extremes of a recent range. It is at this point where reversals are most likely to occur. Simply put, the lower the reading, the more oversold and the more likely a bounce is due. The higher the reading, the higher the likelihood of a rejection due to overbought conditions.
BTCUSD saw 10,000%+ ROI following the low | Source: BTCUSD on TradingView.com
Bitcoin Bulls Attempt To Put In A Bottom
Currently, Bitcoin price on 3-day timeframes is at the lowest point in its entire history. The only other time as low, was at the 2015 bear market bottom. A second-bottom followed in the months after, followed by price appreciation upwards of 10,000%. From a…
