Is the trend reversing for bitcoin?
Bitcoin the dominate cryptocurrency in the market a had a strong up turn in recent months, however the question has to be raised is it time for a reversal of the trend for bitcoin? We will go over some of the technical details and indicators that point towards a down trend.
Arnaud Legox Moving Average
The Arnaud Legoux moving average in my opinion is the king of all the moving averages for two primary reasons it is highly responsive to movements in the tread and it is also a-lot does a better job at smoothing out a tread. This was a common drawback for investors using traditional moving averages. Only made in 2009 the Arnaud Legoux moving average is new to the moving average family but insanely effective, as it is swifter eliminating the price lag that is often associated with moving averages. The fundamentals of the moving average remain the same however if the stock price in blue line moves below the Arnaud Legoux moving average in the red line it highlights a bearish trend is occurring indicating prices may fall. This is the case with Bitcoin as we can see the stock price has started to cross below the Arnaud Legoux moving average.
The Vortex Indicator is a powerful indicator for spotting trend reversals and confirming current trends. The way it is used is very simple there is a VI positive line in (Blue) and a VI negative in (red) a bullish trend is confirmed if the blue line sits above the red line and a bearish trend exists if the red line sits above the blue line. A reversal occurs when the lines cross as we can see with bitcoins graph above the red line has crossed above the blue line indicating a trend reversal and a sell signal that the downtrend is on its way.
Balance of Power
The Balance of power indicator is very simple when the line is above 0 it indicates that buyers have dominance over sellers and when it is below 0 it indicates that sellers have dominance over buyers. The indicator moves between 1 at the very highest and -1 at the very lowest the indicator tracks how strongly price trades to extreme high and low levels. The Reading Bitcoin has is -.59 which strongly indicates sellers are dominating the buyers in the market pointing to the conclusion that Bitcoins price may move lower.