Bitcoin and Ether Price Indicators Support Near-Term 'Relief Rally'

Bitcoin's weekly stochastic oscillator has turned up from oversold or below -20 levels, a positive sign for the cryptocurrency.

AccessTimeIconJun 14, 2021 at 7:17 p.m. UTC
Updated Aug 21, 2021 at 7:14 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Price charts for bitcoin and ether might be turning bullish after a month of market stagnation, potentially offering respite in the coming weeks, a new analysis shows.

  • Bitcoin's weekly stochastic oscillator has turned up from an oversold level or below 20, signaling the possibility of a near-term "relief rally," according to Katie Stockton, founder and managing partner of Fairlead Strategies.
  • Seasoned traders use the oscillator in conjunction with other indicators to gauge oversold and overbought conditions, which act as triggers for long and short trade entries. A reading below 20 implies oversold conditions, while an above-80 print indicates an overbought market.
  • In bitcoin's case, the weekly stochastic's positive turnaround is accompanied by a buy signal on the daily and weekly chart DeMark Indicators, as noted by Stockton in a weekly research note. According to Investopedia, DeMark indicators compare the most recent maximum and minimum prices to the previous period's equivalent price to measure the demand of the underlying asset.
  • Thus, bitcoin appears poised for a more substantial relief rally – a price bounce due to seller exhaustion. The cryptocurrency is currently trading at 2.5-week highs above $40,000, representing an 8% gain on a 24-hour basis.
  • According to Stockton, an initial resistance for bitcoin is near $47,000, which, if breached, would open the doors for further gains. However, Pankaj Balani, CEO of Delta Exchange, expects fresh sellers to step in above $45,000.
  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • BTC Katie Stockton
    BTC Katie Stockton

    Ether, the native token of Ethereum's blockchain, could also benefit from a shift in the price-chart indicators.

    "The daily and weekly stochastics have turned up, supporting a near-term relief rally and test of initial resistance near $3,000," Stockton said.

    The second-largest cryptocurrency has faced multiple rejections in the range of $2,800-$3,000 since late May.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.