Technical Analysis of Stochastic Oscillator Crypto Indicator

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

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

Bitcoin Trading Market Tops

Narrow cryptocurrency market top that does not 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 btcusd price further down without much resistance from the bitcoin trading bulls.

Very high, wide cryptocurrency market tops

Wide cryptocurrency 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 cryptocurrency indicator will not even reach the oversold levels before the stochastic oscillator cryptocurrency indicator moves back to the overbought levels.

Bitcoin Trading Market Bottoms

A narrow cryptocurrency market bottom that does not reach very deep below 20%

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

Very wide, deep cryptocurrency market bottoms

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