What about the price of bitcoin? According to Marcus Sotiriou, sales trader at GlobalBlock, technical indicators suggest that a big move is coming. Sotiriou shared his analysis of what is happening with bitcoin, with Cointelegraph en Español.
“Bitcoin rebounded over the weekend to close an eighth consecutive week above $34,000 since may’s drop. This demonstrates the significant demand for the first cryptocurrency at the low levels of $30,000. Bitcoin also continues to maintain the 50-week exponential moving average as support,” explained Marcus Sotiriou.
Looking at the big picture, he indicated that Bitcoin remains in a range between USD 29,000 and USD 42,000 approximately, and until it can recover the USD 42,000 level, he stated that it technically remains in a downtrend.
“Bollinger Bands, which forecast volatility when narrowing, suggest a big move and a possible breakout of this range soon. The bands are the narrowest they have been since September 2020, which preceded the rise from $10,000 to $65,000,” he said.
On the other hand, he said that there are some technical indicators that suggest that this big move will be up. “First of all, Bitcoin is breaking a downward trend in the daily RSI (Relative Strength Index) that began in January 2021. If there is a rebound in volume and some positive price action in the coming days, this could give Bitcoin a good chance to retest the range high at $42,000.” Added.
He also noted that “Bitcoin is showing more positive signals in the daily RSI as there remains a bullish divergence. This shows that because the RSI is trending higher while the price is trending downwards, the bearish momentum is disappearing.”
In addition, he cited a report from Coinshares saying that it has shown that institutional managers have become net buyers of cryptocurrencies for the first time in five weeks, after a sustained period of profit-taking. “Coinshares reported that this was the longest institutional selling streak since February 2018,” he added.
He further commented, “Over the weekend, the FBI issued an industry-wide warning about possible attacks on cryptocurrency holders and exchanges.
Power Ledger migration
To conclude, Marcus Sotiriou noted: “Australian blockchain company Power Ledger has announced that it will migrate Solana from Ethereum. Power Ledger has developed a software platform that allows homes and organizations to trade renewable energy with each other.”
“The company has taken note of the increased speed and scalability of Solana’s blockchain, as well as the lower power output of Solana’s Proof of History (POH) and Proof of Stake (POS) mechanisms. The co-founder stated that the limitations of the Ethereum Proof of Authority were always evident, such as the low transactions per minute,” he concluded.
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