Bitcoin price has struggled to decisively cross the $100,000 threshold over the past four weeks, largely fluctuating between $90,000 and $100,000. This correction and the dull evolution of prices have caused some degree of bearish sentiment among traders, some are speculating that Bitcoin may have already reached its peak for the current cycle.
However, some bullish supporters still note that Bitcoin’s price trajectory remains bullish as technical indicators continue to signal upward momentum. Crypto analyst Tony “The Bull” Severino highlighted a key observation on social media platform X, focusing on Bitcoin’s monthly stochastic indicator to suggest that Bitcoin’s bullish momentum is far from exhausted.
A monthly stochastic above 80 signals strong momentum
Bitcoin’s diminishing bullish sentiment has continued over the past 24 hours, with the Crypto Fear And Greed Index now indicating neural sentiment among crypto market participants. However, according to technical analysis, this lack of greed and bullish sentiment will not necessarily translate into an imminent drop in Bitcoin price.
Crypto analyst Tony Severino pointed out that Bitcoin’s monthly stochastic oscillator, which is a tool used to measure market dynamics, is still above the 80 level for bullish momentum. This indicates strong upward momentum, as stochastic holding above this threshold historically aligns with significant price increases.
Interestingly, history shows that holding Bitcoin above this 80 level on the Stochastic Oscillator has consistently led to prices continuing to rise. This trend is evident in the bull rallies of 2017, 2020, and January 2024, where Bitcoin repeatedly bounced back to the 80 level and made substantial upward moves each time. As such, the current ability to maintain this level shows that Bitcoin the uptrend is still on track even after recent market fluctuations.
Doji Candlestick Patterns Support Bitcoin Price Continuation
Another key observation from Severino’s analysis is the repeated appearance of doji candlesticks in the Bitcoin price chart when defending the 80 level on the stochastic indicator. The 2017, 2020, and 2024 retests were highlighted by the formation of a doji candle during this period. Notably, these doji candlesticks formed during the monthly candlestick period, revealing indecision that lasted for a few weeks, much like the current price action.
As it stands, Bitcoin price action between the $90,000 and $100,000 levels has led to the emergence of a doji on the monthly time frame to complement the prospects of a price rebound on the stochastic indicator. The indecision reflected in this doji candlestick suggests that Bitcoin has yet to make a final decision, with the options being either a significant breakout above $100,000 or a drops below $90,000.
At the time of writing, Bitcoin is trading at $97,000 and is up 2% over a 24-hour period. In a previous technical analysis, Tony Severino underlined $178,000 as a potential price target for Bitcoin.
Featured image created with Dall.E, chart from Tradingview.com
