bitcoin price has had a rough start to the week after losing its footing above $52,000 on Tuesday. However, all hope is not lost, as indicators still point to a continuation of this trend. crypto analyst Tony The Bull has identified a major trend on the bitcoin chart that could trigger a continuation of the trend above $52,000.
bitcoin's 1-Week Fisher Transformation Into a Turning Point
in an analysis aware On X (formerly Twitter), the crypto analyst shared a chart showing the transformation of bitcoin Fisher compared to the price. Most importantly, the chart showed the 1-week Fisher Transform and how it has moved since 2017.
The analysis shows some similarities between the current trend and the trends observed in 2017. A similar trend was also observed in 2019 and 2021, where the Fisher Transform rose rapidly before falling. But the importance of this trend lies in where Fisher Transform goes from here.
The current important level is the 1.5 standard deviation, which has been a crucial point whenever this trend has occurred. Now, if Fisher Transform can stay above this level, its price is bullish. However, if it falls below this standard deviation, the price is very bearish.
<img decoding="async" class="alignnone wp-image-576181 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Fisher-Transform-Hits-Critical-Level-Not-Seen-Since-2021.jpeg" alt="bitcoin” width=”544″ height=”338″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Fisher-Transform-Hits-Critical-Level-Not-Seen-Since-2021.jpeg 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/Bitcoin_a73bd2.jpeg?w=1140 1140w” sizes=”(max-width: 544px) 100vw, 544px” loading=”lazy” data-recalc-dims=”1″/>
Source: Tony The Bull on X
“This is a fundamental area based on historical price action and its 2017-like behavior that was not seen in 2019 or 2021,” explains the crypto analyst. “Below tends to incite bearish trends, while staying above gives bulls extra vigor.”
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Fisher-Transform-Hits-Critical-Level-Not-Seen-Since-2021" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″/>
btc price at $51,100 | Source: BTCUSD on Tradingview.com
Bears and bulls compete for control of btc price
Interest in the next direction of bitcoin price has bulls and bears clashing over which side will regain control of btc. This has caused the price of the digital asset to fluctuate wildly in recent days, going from $53,000 to below $51,000, before recovering once again in the early hours of Wednesday.
This back-and-forth continues to keep the price of bitcoin low, but investor sentiment appears to be rising even despite this. According to the bitcoin Fear & Greed Index, investor sentiment has reached extreme greed for the first time in a year.
Historically, extreme index greed has signaled the top of the market, with prices tending to decline shortly after. However, bitcoin continues to see positive indicators, and its trading volume increased by more than 40% in the last 24 hours alone.
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