Given the recent drop across cryptocurrencies, such as Bitcoin, BTSE token is holding up pretty good. While it is down, it is not too bad. Also, overall price is up since initial listing. In this article, I look at moving averages, Fibonacci retracements, heikin-ashi technique, and more.
Price is sitting above the 20-day moving average (MA; red). With the Bitcoin correction recently, BTSE token has also fallen. This seems to be forming an M-top. I will go more into it below in Bollinger bands. Should price continue to fall, it could reach the 50-day MA (orange). In the current position, I would like to see how Bitcoin behaves before thinking about how BTSE token will behave.
Moving averages all above each other
The price broke at the upper bollinger band about a week ago and tested the 20-day MA. Then it bounced off it and failed to make a higher high or break the upper band. This is what is known as an M-top. Should price break down, it could go as low a the most recent low about a week ago. However, as mentioned above, this depends on what Bitcoin does.
Bollinger bands and M-top
Regarding retracements, BTSE token is up; so, it is not a retracement, it is an extension. BTSE token is up about 47% from the opening price at time of listing back in March 2020. Although price is extended, it has retraced a little but is still over the 78.6% level. Typically, these areas will act as support, and I suspect they will, but given the long wick a week back, price could reach this area near $2.23.
The heikin-ashi technique shows the BTSE token was in an uptrend before slowing down to where it is now. The current candle is neutral with bullish bias. I want to wait until the close of the day to see how this candle and the following form. I expect a downward trend to establish should the current candle close red and bearish.
Heikin-ashi up trend slows
Chaikin money flow, on balance volume, and MACD
Each indicator has been on the rise since the bottom shortly after listing, making a series of higher highs. In the grand scheme, the current drop is not significant at all compared to some other cryptocurrencies. Although all three indicators are pointing downwards, they are only doing so mildly. Still I want to wait and see how the rest of the market plays out after the recent dip in price across digital assets.
Chaikin Money Flow, on balance volume, and MACD
BTSE token is holding up good despite drops across the market. Price is above all the moving averages, price is extended although retraced just a bit in Fibonacci retracements, and the heikin-ashi is neutral but with a bullish bias. The indicators tell a milder picture. Each is near all-time-highs, and only down a bit. BTSE token is handling the market corrections well. Still I want to wait to see how Bitcoin acts in the coming days before looking at BTSE token more. Although, BTSE token has not dropped as much as Bitcoin, I still like to see how it reacts as it often drives the market.
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