Trade Bitcoin Trading

Analysis of Stochastic Crypto Indicator

Bitcoin data comes from stochastic oscillator shapes and lengths at tops and bottoms in btcusd charts.

How long bitcoin stays overbought or oversold matters. It reveals the strength of BTCUSD trends.

Bitcoin Trading Market Tops

A peak in the cryptocurrency market that fails to extend significantly beyond the 80% level.

Narrow cryptocurrency market peaks are indicative of weakened bullish momentum, signifying that bears have rapidly overcome the bitcoin trading bulls. This situation suggests that the bears are likely to drive the bitcoin price further down with minimal interference from the bulls.

Very high and wide market tops

Wide market tops mean that the bitcoin trading bulls are very powerful much more than the bitcoin trading bears and the ensuing short term bitcoin trend reversal (retracement), will be very short lived. The retracement on the stochastic oscillator technical indicator will not even reach the oversold areas before stochastic oscillator indicator moves & heads back to the over bought levels.

Bitcoin Trading Market Bottoms

A shallow decline in the cryptocurrency market that doesn't go below 20%

When the cryptocurrency market shows a narrow bottom for Bitcoin, it suggests weak bearish momentum attempting to lower prices. Meanwhile, bullish forces have quickly asserted control, pushing Bitcoin prices higher. This upward trend is expected to persist for some time.

Very wide and deep market bottoms

A bottom across a large market shows that bitcoin sellers are very powerful and those selling crypto control the bitcoin cost, so any rise upward won't last very long.

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