Bitcoin’s “death cross” — when the 50-day MA falls below the 200-day MA — often signals bearish sentiment, but it’s not always followed by major declines. Context matters.
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Sometimes. Bitcoin is viewed as “digital gold,” offering a hedge against inflation or fiat instability. However, crypto’s high volatility and correlation with tech stocks limit its reliability. Diversification and timing matter.
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Bollinger Bands are a useful tool for assessing price volatility. When the price moves near the upper band, it may indicate overbought conditions, while the lower band suggests oversold conditions. The width of the bands also reflects market volatility; wider bands indicate higher volatility, while narrower bands suggest lower volatility. During periods of price consolidation, a breakout above or below the bands can signal significant price movement. Traders often use this indicator in conjunction with other tools like RSI for better decision-making.
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