Bitcoin is sending technical signals implying a sharp increase in the costs of existing securities next week if trading volume continues to grow, virtual asset broker GlobalBlock said in a note on Monday.
The value of the world’s largest cryptocurrency through market capitalization can simply get out of its existing trading diversity of aspects and climb to $42,000 in the next two weeks, said Marcus Sotiriou, distributor at GlobalBlock. That would be 26% higher than bitcoin’s value of $33,171. noticed around noon on Monday.
At the base of this prediction is the Bollinger Bands indicator, which defines a decreasing diversity that predicts volatility when restricted, the indicator is at its lowest margin since September 2020.
Bitcoin has been trading between $29,000 and $42,000 since a broader cryptocurrency slump in May; unless the stock leaves this range, it technically remains in a downtrend, Sotiriou added.
However, he noted that the value of bitcoin continues at the 50-week exponential moving average as support and also appears to be emerging from a downtrend in the daily relative strength index, which began in January 2021.
“Because [the relative strength index] is trending upward while the value is down, the bearish momentum is fading,” he said.
Bitcoin is last trading at 2. 43% less, at $33,072 at 3:23 p. m. And on Mondays.