Bitcoin might be mulling a big move to either side

Bitcoin has been moving along the channel’s lower bound for over a week, with its trend turning increasingly neutral, as reflected in the declining ADX on the daily graph; in addition to that, the RSI has failed to distort the bearish structure and MACD has begun breaking above the midpoint. At the same time, the number of Bitcoin addresses exceeding 1,000 BTC has continued to rise, while the opposite has been going on among the addresses exceeding 100 BTC. In conclusion, the picture is mixed, bringing us to the setup we introduced in the previous article, with a bullish stance above the channel’s lower bound and a bearish outlook below it.

Illustration 1.01

Illustration 1.01 shows the daily chart of Bitcoin’s RSI. If it breaks above the resistance, it will distort a bearish structure. As a result, it will bolster a bullish case in the short term.

Illustration 1.02

The picture above shows the daily graph of Bitcoin’s MACD attempting to break above the midpoint. If successful, the breakout will be positive for the asset in the short term.

Illustration 1.03

The image above displays an alternative upward-sloping channel.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Slightly bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

The number of Bitcoin addresses with balances exceeding 1,000 BTC has been trending slightly lower in the past three days.