Emily Walker
For the past month, Bitcoin’s price has struggled to decisively exceed the $100,000 mark, mainly oscillating between $90,000 and $100,000. This ongoing correction and tepid market action have fostered a somewhat pessimistic outlook among traders, leading some to believe that Bitcoin may have peaked for this cycle.
On a brighter note, several optimistic traders argue that Bitcoin’s price trend remains positive, as technical signs suggest continued upward movement. Crypto analyst Tony “The Bull” Severino pointed out on social media that the monthly stochastic indicator for Bitcoin indicates that its bullish momentum is not yet exhausted.
Strong Momentum Indicated by Monthly Stochastic Above 80
Recent data shows waning bullish sentiment toward Bitcoin, with the Crypto Fear and Greed Index reflecting a neutral mood among crypto investors. Yet, this lack of greed may not foreshadow a drop in Bitcoin’s price, according to technical assessments.
Tony Severino explained that Bitcoin’s monthly stochastic oscillator, a crucial tool for assessing market momentum, remains above the 80 mark, signifying robust bullish momentum. Historically, when this indicator stays above 80, it corresponds with significant price increases.
Interestingly, past performance indicates that Bitcoin maintaining its position above the 80 level on the stochastic oscillator has consistently resulted in price rallies. This trend was evident during the bull runs of 2017, 2020, and January 2024, where Bitcoin rebounded several times after touching this level and subsequently marked substantial upward movements. Therefore, sustaining this threshold suggests that Bitcoin’s uptrend is likely to persist despite recent market turbulence.
Doji Candlestick Patterns Support Continued Bitcoin Growth
Another significant finding from Severino’s analysis is the repeated appearance of doji candlesticks on Bitcoin’s price charts when it defends the 80 level on the stochastic indicator. The formations seen in 2017, 2020, and 2024 were marked by doji candles, indicating prolonged indecision, similar to the current price behavior.
Currently, Bitcoin’s trading range between $90,000 and $100,000 has led to the emergence of a doji on the monthly chart, reinforcing expectations of a price rebound in line with the stochastic indicator. The indecision represented by the doji suggests that Bitcoin has not yet made a clear movement, leading to two potential scenarios: a significant breakout above $100,000 or a decline below $90,000.
As of now, Bitcoin is trading at $97,000, showing a 2% increase in the past 24 hours. In earlier analyses, Tony Severino mentioned a potential target of $178,000 for Bitcoin.