Analysis of Stochastic Oscillator Crypto Indicator

A lot of bitcoin information can be gathered from the shapes and duration of the btcusd market tops and bottoms of the stochastic oscillator bitcoin indicator.

The amount of time that bitcoin stays overbought or oversold is an important factor when analyzing the strength of the btcusd market trends.

Bitcoin Trading Market Tops

Narrow cryptocurrency market top that doesn't reach very high above 80%

Narrow cryptocurrency market tops means that the bulls are weak, and that the bitcoin trading bears have overpowered the bitcoin trading bulls very quickly. This means that the bitcoin trading bears might push the bitcoin price further down without much resistance from the bitcoin trading bulls.

Very high, wide market tops

Wide market tops mean that the bitcoin trading bulls are very powerful much more than the bitcoin trading bears and the ensuing short term bitcoin trend reversal (retracement), will be very short lived. The retracement on the stochastic oscillator technical indicator will not even reach the oversold areas before stochastic oscillator technical indicator moves back to the over bought levels.

Bitcoin Trading Market Bottoms

A narrow cryptocurrency market bottom that doesn't reach very deep below 20 %

The narrow cryptocurrency market bottom means that bitcoin trading bears are weak in their attempt to push the bitcoin price down, the bitcoin trading bulls have gained control of the bitcoin price pretty fast so the bitcoin price movement upwards will continue for a while. And the upward market trend will continue for a while.

Very wide, deep market bottoms

A wide market bottoms is a sign that the bitcoin trading bears are very strong and the crypto sellers are in control of the bitcoin price, therefore any retracement upwards will not stay for long.