The Bitcoin market at the moment is going through somewhat of a phase shift, with the price fluctuating between bearish lows and bullish highs. Despite the fall below the $7000 mark, the value of the cryptocurrency rose to settle between $7200 and $7300. Spotting this trend, dave the wave, a famous cryptocurrency proponent tweeted:
“Two years since the peak and the price is right where it should b according to the logarithmic growth curve. Gaussian Channel in the medium term-bullish.”
The Gaussian filters are exponential moving averages applied multiple times. The beta and alpha values on the graph are calculated based on the sampling period and the number of poles specified. The Gaussian Channel reflected earlier highs at a time when Bitcoin was trading for $7143.96 after a 5.83 percent increase in value over the 24-hour timeframe.
The world’s largest cryptocurrency had a market cap of $129.349 billion and a 24-hour market volume of $31.369 billion. A decent bounce was seen after the price produced a double bottom matching up with the 23 November low, which was down at $6500.
Technical analysis of Bitcoin showed that most of the other indicators had sided with the bear. The Parabolic SAR was above the price candles, which was a sign of decreased market pressure. The Relative Strength Index had spiked a bit towards the middle of the graph. The RSI stated that the Bitcoin market was closer to the oversold zone, meaning more holders were selling rather than buying BTC.
Currently, the Chaikin Money Flow indicator stands below the zero line after a gradual decline since August of this year. The CMF for Bitcoin at press time showed that the capital leaving the market was much more than what was flowing into it. Some users had queries to the Gaussian graph with Ansh B tweeting:
“Dave isn’t it true that price has never entered the Gaussian channel during bull. Signaling that we are likely to move to bear market yet again. I.e we were in a VERY short bull market this year! And now it’s over ….”
Some members have even stated that in some instances, Bitcoin had fallen hard right after it entered green in the Gaussian channel. These queries came at a time when the weekly Gaussian channel was also signaling reduced cyclical volatility.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.