Jason Pizzino, a well-known cryptocurrency analyst and trader, is forecasting a major rally in Bitcoin prices in the near future. However, his prediction is not based on the usual suspects like the stock-to-flow model or on-chain metrics. Instead, Pizzino is closely watching a lesser-known technical indicator that he believes is signaling an imminent breakout for BTC.
Trading indicators are tools that use mathematical computations and chart patterns to help traders spot potential trading opportunities in the crypto market by analyzing price and volume data. These indicators reveal market trends, momentum, and likely price reversals to assist traders in making informed buying and selling decisions.Some of the most important Bitcoin trading indicators include:
- Moving Averages (MA) – Trend-following indicators that smooth out price fluctuations over time to identify the overall direction of the market
- Relative Strength Index (RSI) – Measures the momentum of price movements, with values ranging from 0 to 100. High RSI values indicate overbought conditions while low values indicate oversold conditions.
- On-Balance Volume (OBV) – Measures buying and selling pressure by adding volume on up days and subtracting volume on down days. Divergences between OBV and price can signal potential trend reversals.
- Bollinger Bands – A volatility indicator that plots two standard deviations above and below a simple moving average of the price. Tight bands indicate low volatility while wide bands indicate high volatility.
- Moving Average Convergence Divergence (MACD) – Trend-following momentum indicator that shows the relationship between two moving averages of a token’s price. Crossovers of the MACD line and signal line can provide buy and sell signals
Jason Pizzino’s Anticipation Based on Stealth Move Indicator
Jason Pizzino, a prominent crypto analyst, is predicting a sudden rally in Bitcoin based on a lesser-known indicator. He has observed that Bitcoin tends to make upward “stealth moves” when its average true range (ATR) reaches a local low while prices either consolidate or set higher lows.
Maintaining Key Trading Range Crucial for New All-Time High
In order for Bitcoin to potentially reach a new all-time high, Jason Pizzino states that it needs to maintain a daily trading range of $1,500 to $2,000 and stay above the $56,000 to $60,000 mark.
Parallel to Early Covid-19 Pandemic Rally
Jason Pizzino draws a parallel to Bitcoin’s rally during the early stages of the Covid-19 pandemic. He notes that Bitcoin experienced a significant breakout after maintaining higher lows and consolidating within a specific range. This pattern was characterized by reduced volatility and increased absorption of sell pressure.
Stealth Move Indicates Gradual Shift from Sellers to Buyers
Pizzino emphasizes that the stealth move involves Bitcoin maintaining higher lows while the trading range tightens. This indicates a gradual shift from sellers to buyers, which has previously led to significant price surges. At the time of Pizzino’s analysis, Bitcoin was trading at $67,717.
Source: The Daily Hodl
