Bitcoin Price Stagnant, But Bullish Trend May Be Emerging
The Bitcoin price has been stagnant for several months now, lacking a clear trend and experiencing a downward spiral in volatility. However, there are subtle signs that suggest a bullish trend may be starting to form.
Main Breakdowns:
- “The trend is your friend” – capturing the prevailing trend can lead to profitable results.
- When there is no discernible trend, investors and traders should wait for it to appear.
- The Average Directional Index (ADX) is a tool that measures trend strength.
- A reading above 20 on the ADX indicates a developing trend.
- The DI+ being above the DI- shows that bulls are in control.
The ADX is starting to turn up after weeks of sideways price action, indicating a strengthening trend. Bitcoin bulls hope to see the ADX grow steeper, similar to late 2020 and early 2022, to break out of the current range and continue the bullish trend. However, it remains to be seen if bears will regain control.
Hot Take: While the Bitcoin price has been stagnant, the emergence of a bullish trend is an encouraging sign. The ADX turning up and the DI+ being above the DI- suggest that bulls are gaining control. If the trend continues to strengthen, Bitcoin could finally break out of its range and begin a new upward trend.
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