Weiss Ratings: The next Bitcoin bull run will not exceed $ 20,000

The drop in the past few days of Bitcoin (BTC) has made many traders fear the worst has yet to come to the market. After weeks-long bull run – which brought BTC from as low as $ 6,400 to an annual peak of $ 10,500, a 10% dump in a day shocked the market, and made many people question whether the trend Whether or not the decline is on the way to form.

While these concerns are true, the recent price action of Bitcoin is easing this. Here are four technical factors that show bulls remain in control, despite the correction we saw in the middle of last week.

Factor 1: RSI is holding up; Uptrend is still intact

The relative strength index (RSI), which is used to measure momentum through the intensity of price action, has just rebounded to the 50 baseline in this uptrend, indicating that buyers are still in control.

“The bulls are still in control when the daily RSI is above 50.”

Factor 2: The number of searches is increasing

This indicates interest in Bitcoin and related topics is increasing rapidly. It was a catalyst that made the crypto market so much higher in 2019, and the same thing could happen in the market by 2020.

“According to Google Trends, the search term 'halving' or‘ halvening 'has increased significantly from April to June 2019 and helped Bitcoin peak at $ 14,000. It started to rise again since December 2019 and create a higher low. My conclusion: Bitcoin price will rise higher in May 2020. ”

Factor 3: Money continues to flow into Bitcoin

The Chaikin Money Flow (CMF) indicator shows that money is still flowing into Bitcoin, when it is still holding above the zero base, although it is less than a few weeks ago.

Factor 4: Bitcoin is holding $ 9,500

Trader CryptoDude posted a chart showing the certainty of Bitcoin's recent price action: BTC printed three long daily lower wicks into the area from $ 9,300 to $ 9,500, but none of the candles closed below this level. .

This shows that the demand for Bitcoin is still very large, and it will create a momentum for strong price increases in the coming days.

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Indeed, some analysts have said that $ 9,500 is the main support that Bitcoin must hold if it wants to keep rising in the future. For example, Crypto Bullet came up with the following to explain why $ 9,500 is so important for bulls:

  • The $ 9,500 zone has been a strong horizontal level of Bitcoin for a long time for Bitcoin, often acting as a reversal for the bulls as prices approach from above, and vice versa.
  • This level is the Fibonacci retracement level of 0.5 for the decline from $ 14,000 to $ 6,400. The Fibonacci 0.5 level is often very important in the market.
  • $ 9,500 is the high volume button price on the VPVR indicator.
  • A golden cross has been created, which often confirms a long-term growth trend for Bitcoin.

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According to Tapchibitcoin / NewsBTC
Translated by ToiYeuBitcoin

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