Long-Term MACD About To Flip Positive, BTC Could Rally
For much of 2018, the Logarithmic Moving Average Convergence Divergence Bitcoin (BTC) chart (one week) has remained under zero, signaling that bears are in control. However, as spotted by long-term-centric analyst Dave The Wave, this specific indicator, which is used to gauge Bitcoin’s overarching momentum, has recently surpassed a key resistance level, and has also begun to trend above zero.
What’s more, the Relative Strength Index (RSI) also broke past a key level of resistance and has moved past 60, which is a series of events last seen when Bitcoin began its next parabolic rally in late-2015.
Dave The Wave did not explain that chart. The popular trader did write “self-explanatory,” however, hinting that this move in the two aforementioned indicators may signal that a bull run is on the horizon.
This is just the tip of the iceberg though. Adaptive Capital’s Murad Mahmudov recently broke down twenty reasonings why Bitcoin seems bullish. Here are a few. Firstly, Bitcoin is currently trading in the midst of an ascending channel, marked by consistent higher lowers and higher highs. With BTC continuing to hold this pattern with an impeccability, a move higher to potentially break out of the upper bound of the channel seems likely.
Thirdly, BTC is currently trading above key moving averages, like the 50-week simple moving average and 89-week exponential moving average, which “caught multiple local bottom and top areas in both previous and current cycles.”
And lastly, as hinted at in previous reports, there has been an unprecedented rally in the amount of BTC upon in short contracts, resulting in postulation, from Mahmudov and others, that a massive short squeeze may soon be inbound.
Bitcoin On-Chain Fundamentals Also Look Decidedly Bullish
If the moves that technicals predict don’t come to fruition, some are sure that fundamentals will pick up the slack. As recently noted by commentator Armin Van Bitcoin, the average number of daily transactions involving BTC is nearing its all-time highs of around 400,000, which were last seen at the peak of the 2017 bubble. Speaking in response to this specific statistic, Tom Lee, the head of research at Fundstrat, told CNBC that this is one of the chief reasons why he, alongside his analyst peers, believes that “crypto winter” is rapidly thawing.
What’s more, as the average daily transaction count has increased, so has the U.S. dollar value of BTC and the number of BTC transacted on-chain. A recent installment of Diar Newsletter has revealed that in February, $70.5 billion worth of value and 19.1 million BTC were transacted on the blockchain. These same indicators now read $132.6 billion and 25.7 million, respectively — an increase of 88% and 34.5% in a three-month time span. Explaining growth further, Diar’s editorial team wrote:
“Coins moved on-chain outpaced dollar value hitting a 14-month high in April. With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of BTC averaged $7,000 – 35% higher than today.”
This growth has led some indicators, especially those championed by cryptocurrency researcher Willy Woo, to signal that this cycle’s bottom is in and that Bitcoin may be poised to soon rally strongly.
On-chain statistics aside, the industry has recently seen an array of underlying developments. As reported by Ethereum World News earlier today, Fidelity Investment’s Bitcoin trade execution product may allow for a massive capital inflow into cryptocurrency. This, according to eToro analyst Mati Greenspan, could push BTC up by “$1,000, $2,000, easily.”
- Source: First Appeared Here
- Published Time: 2019-05-07 06:00:18
The views and opinions expressed in the article Key Bitcoin (BTC) Indicator Hints That A Bull Run Is Rapidly Approaching – do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research..
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