Bitcoin Bulls Face Setback as Monthly Stochastic Indicator Turns Lower: Analyst

The comment refers to bitcoin’s repeated failure to scale the so-called “cloud resistance” at $31,900 in the past few months and points to a long, drawn-out basing or bottoming process. That’s “a setback toward a long-term turnaround,” Stockton wrote.

Stochastic has printed an overbought downturn. (Fairlead Strategies, TradingView) (Fairlead Strategies, TradingView)

Previous overbought downturns in early 2021 and December 2017 marked major price tops.

The monthly MACD histogram, an indicator used to gauge trend strength and trend changes, is flatlined near zero, indicating neutral long-term bias.

Crossovers above zero indicate a bullish shift in momentum, while a drop below zero represents a bearish trend change. While the indicator bottomed out a year ago and has yet to turn positive “suggesting a sustainable uptrend is not yet in force,” Stockton noted.

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Bitcoin changed hands at $25,700 at press time. According to Stockton, the immediate support is seen at $25,200 while the 50-day simple moving average at $28,200 is key resistance.

Edited by Sheldon Reback.

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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk’s Markets team.

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