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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 following main transfer. As the Heikin Ashi month-to-month candle flashes bearish alerts, the analyst shares the best time to purchase Bitcoin, warning buyers of potential bear market traps.
Upper Bollinger Band Reveal Time To Buy Bitcoin
Severino has provided an in-depth examination of the Bitcoin market, figuring out exact situations underneath which buyers and merchants, together with himself, would possibly take into account re-entering based mostly 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.
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The chart highlights that in late 2021, after hitting its earlier ATH, Bitcoin touched the Upper Bollinger Band however failed to shut above it. At the time, this transfer was perceived as a basic non-confirmation, which in the end led to a pointy reversal and brutal bear market in 2022.
Fast ahead to in the present day, Bitcoin is hovering above $94,000, with the Upper Bollinger Band positioned at $108,000. According to Severino, merely reaching this Upper Bollinger Band degree, because it did in 2021, is just not sufficient purpose to purchase Bitcoin in anticipation of a worth enhance. Instead, the analyst asserts {that a} full month-to-month shut above $108,000 is required to substantiate 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. However, if the flagship cryptocurrency fails to shut above the Upper 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.
Overall, Severino advises buyers to intently 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 method to have interaction with the market safely.
BTC’s Heikin Ashi Candle Flips Bearish
While 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.
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The chart highlights a important second the place Bitcoin’s Heikin Ashi candle turned crimson for the primary time since its earlier worth peaks in 2014, 2018, and 2022. Historically, such a sign has marked the start of extended bear markets and deep price corrections.
Further 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 Trigger line. In earlier cycles, each time these two alerts — the Heikin Ashi and Fisher Transform — aligned, Bitcoin skilled substantial declines that lasted for months, if not years.
Featured picture from Pixabay, chart from Tradingview.com
