Bitfinex Lists BTSE Token. Will The Rally Continue?
Since my last article on BTSE, the utility token is up 33.85% to a price of $1.46. Nevertheless, price is still down -26.75% from its opening price of $2.00. The chart looks neutral with a bearish bias and the indicators suggests a bearish bias too. With BTSE's two month rally and the current chart, I would normally expect a correction. However, BTSE was added to Bitfinex with the BTSE/USD trading pair on June 17th, 2020 at 3PM UTC. With this news, BTSE may be able to turn the bearish bias into a bullish one and continue to rally.
BTSE continued its previous rally
BTSE still down from initial release
The heikin-ashi technique is showing a neutral chart, just like the chart above. The difference is that this chart has a bullish bias. This bullish bias and the news of the Bitfinex listing suggests divergence when compared the indicators reviewed below. Let us look at some support and resistance levels.
The heikin-ashi technique shows neutral chart with bullish bias
The Fibonacci retracements show that BTSE is testing the 50% percent retracement level, or $1.50. It has been testing this area for a whole week now. After a week, I would expect for price to at least be above the $1.50 level. Perhaps the news of the Bitfinex listing will be enough to push it over the resistance level. This would give BTSE a chance at establishing support in this area and continue the rally.
Fibonacci retracement resistance at the 50% level
Moving Averages And Bollinger Bands
Price is currently above both the 20- and the 50-day moving average (i.e., red and orange, respectively), which suggests that either one can act as support. However, price has already broken past the 20-day MA couple times in the last week and has dropped down as far as the 50-day MA, or the lower Bollinger Band (BB; white). In regards to the upper BB, price closed above it on June 11th, 2020 and has dropped below it since. With BB's this typically suggests that price has reached extreme values compared to the 20-day MA. If price fails to break past the upper BB again (as it did a couple days ago) in the coming few days, it would typically indicate a correction.
Bollinger Bands and moving averages
On Balance Volume
The OBV has peaked and has since made a series of lower highs and lows. This is a bearish sign. However, it looks as if the OBV is approaching a previous area of support established in last two weeks of May. It does not appear the OBV has reacted in a positive way to the Bitfinex listing news. If anything it looks like the has been selling pressure since the listing.
The On Balance Volume pointing downwards
Chaikin Money Flow
The CMF has made a lower high but has yet to make a lower low. The CMF is also pointing downwards. Overall, it looks bearish to me. Despite this, the CMF is above the zero line indicating there is still a buying pressure bias.
The Chaikin Money flow over the zero line but pointing down
The MACD has been on the rise. The MACD line (blue) met and slightly broke above the signal line (red). However, the MACD line has recently crossed below the signal line. The difference in distance from each other is small when looking at the histogram. To me this suggests the MACD could go either way, although I cannot deny its bearish bias.
MACD could go either way
Overall, the BTSE chart looks neutral and the indicators are bearish. Only the heikin-ashi technique suggests a bullish bias. This, along with the news of the BTSE/USD trading pair on Bitfinex it not enough to convince me of a continued rally. However, the listing news is so new; only listed a couple days ago. Perhaps it is too early to tell how the news will affect the BTSE price. Generally, I think this a bullish event for BTSE, but a large amount of evidence points to a bearish trend or correction in the next few days. What is more likely is the BTSE token will establish support around the current levels before continuing any upward trend. However, given the news, I would not be surprised if the rally continues.
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