Countries around the world have begun to cut interest rates, which shows that the trend of monetary easing is still underway. It seems obvious that the Bank of England and the Federal Reserve will follow suit in cutting interest rates in the coming months. This global liquidity cycle suggests that the money supply is expected to increase, which will support the rise in safe-haven asset prices, with cryptocurrencies being the first to bear the brunt.
On the 5th of this month, the Bank of Canada announced a 0.25% interest rate cut, becoming the first central bank in the G7 industrial countries to do so. Soon after, European central banks also announced a 0.25% interest rate cut on the 6th, the first rate cut by the European Central Bank in nearly five years. The wave of interest rate cuts by central banks around the world has already begun, and the good time to buy the dips of Bitcoin has arrived.
Bitcoin four-hour chart
According to the current Bitcoin 4H level chart, we can see that the current MACD moving average is running below the 0 axis, and the DIF line and DEA line are both in the negative area. However, the DIF line is approaching the DEA line upward, showing a potential golden cross signal. If the DIF line breaks through the DEA line, it means that the bulls are strengthened, so that the price of Bitcoin continues to rise.
Secondly, through the 4H level KDJ indicator, we can see that the current K-line value and D-line value are moving upward, the J line is rising much faster than the other two lines, and the KDJ value is greater than 50, showing that the bullish trend is dominant. The current K-line value and D-line value form a golden cross, indicating that the price of Bitcoin will have room for further increase in the short term.
Finally, we can see from the Bollinger Band indicator in the 4H level chart that the current price is running between the middle and upper tracks of the Bollinger Band. If the price can break through the middle track, it means that the upward trend will continue. The upper and lower tracks of the Bollinger Band are expanding, indicating that market volatility is increasing. The current price is close to the 4H middle track. If the price breaks through the upper track and stabilizes, it will further confirm the bullish trend.
Bitcoin one-hour chart
According to the current Bitcoin 1H level chart, we can see that the current price of Bitcoin is between the middle and upper tracks of the Bollinger Bands, and is close to the upper track. This shows that the current market is relatively strong, but it has not been able to effectively break through the upper track for a long time, so we need to pay attention to the resistance of the upper track.
Secondly, through the KDJ indicator at the 1H level, we can see that the K, D, and J line values are currently in the overbought area, and there are signs of a turning point. The J line has also begun to fall, indicating that there is a risk of a pullback or shock in the short term.
Finally, according to the 1H MACD indicator, the DIF line and the DEA line are currently above the 0 axis, and the DIF line is above the DEA line, which also shows that it is currently in a bullish trend. However, the MACD red bar chart is gradually shortening, which suggests that the bullish upward momentum is weakening, and we need to be alert to the risk of callbacks.
Comprehensive analysis: Combining MACD, KDJ and BOLL indicators, Bitcoin shows the potential for a short-term rebound on the 4-hour chart, but further observation of the MACD golden cross and the breakthrough of the Bollinger Band middle track (66413) is needed to confirm the stability of the medium-term trend. Bitcoin's 1-hour chart shows that Bitcoin may face some shocks or small corrections in the short term, but the overall trend is still bullish. It is recommended to pay close attention to whether the price can continue to stay above the Bollinger Band middle track (66364) and the further movement of the MACD indicator. If the KDJ indicator continues to fall and the MACD red column further shortens, be alert to a larger correction.
To sum up, the following suggestions are given for reference
Long on Bitcoin when it pulls back to 66,400, target 68,100, defense 66,000.
It is better to give you a correct idea and trend than to give you a 100% accurate suggestion. After all, it is better to teach a man to fish than to give him a fish. Suggestions can make you money for a while, but ideas can make you money for a lifetime! What matters is the idea, the grasp of trends, the layout of the market and the planning of positions. What I can do is to use my practical experience to help you so that your investment decisions and business management will go in the right direction.
Writing time: (2024-06-17, 00:10)
