Since the beginning of this year, Bitcoin has been booming and gaining nearly 30%, from $ 7,000 to $ 9,382 in a few weeks.

The move seems to mark the end of the 50% downtrend that has 'haunted' Bitcoin during the second half of 2019, as positive technical signals have appeared in the past few days, implying some further reversals. follow.

Bitcoin started formed reverse signs important

According to trader Brent, the daily chart of Bitcoin has just formed an important technical signal: the 50-day moving average (MA) crosses the 100-day MA, creating a bullish cross.

This technical signal has been seen since 2014 for 8 times and the price is constantly escalating thereafter.

Indeed, the last time an intersection occurred between these two MAs brought the price from $ 5,800 in early 2019 to 140%. There are also other historical cases that Brent points out in his chart.

Golden Cross on ranking 1 day today of the Bitcoin

TYes, 2014, 7 out of 8 occurrences this sign has led to an upward trend.

However, this is not the only signal that Bitcoin's uptrend has just begun.

Trader Coiner Yadox earlier this week shown 25 factors combination why Bitcoin can restart the upward trend. Typical as:

  • BTC recently received a 21-month EMA's price support, then closed above the 10-month EMA.
  • Bitcoin's relative weekly strength index (RSI) has surpassed the 55 threshold, used to be the market's inflection point; When the RSI is above 55, BTC is technically in a bull market.
  • The leading cryptocurrency has moved above the 200-day MA. Yadox sees this as a sign of a bull market and Tom Lee of Fundstrat agrees.
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Not to mention some of the most prominent traders (each accurate prediction) who have had bullish sentiment in recent weeks.

Inside, SmartContracter famous for predicting a bottom of $ 3,200 in 2018 says it is highly likely that Bitcoin will break $ 14,000 by mid-2020, during or after halving.

Not everyone is convinced

Despite such positive signs, not everyone believes Bitcoin will continue higher from here.

Bitfinex's well-known trader, J0e007, said the market trend was formed due to “supply / demand imbalance and supported by fiat in / out stream”.

J0e007 went on to state in a later tweet that “I will believe that when I see the fiat flow”, that is, he doesn't see market data proving Bitcoin will rise 50% from the bottom of $ 6,400 in the last 50 days.

He asserted that the sentiment was down and referred to Tether's flat market capitalization as “difficult to explain from a new bull market perspective” and Grayscale's cash inflow data did not convince him that there was enough demand to Absorb mining supply.

Analyst Teddy also discussed this in a recent tweet.

“Diagram hLooks pretty weak everyday: – MACD test bear cross – The $ 8,000 high have never been tested as a support – The mid level 7.000 dollars never been test as support (Please try to follow).

BTC can enter the accumulation phase increase if held price above this critical level

If the bulls can sustain the trade above $ 6,800 in the event of a sharp fall, then the next wave will be a prolonged sideways trade, marking a cumulative period.

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TraderXO has emphasized this ability:

BTC – The bigger picture. If this is the major accumulation period and the local peak is near as being achieved I wouldn't be surprised to see one of these diagrams take place BTC. The next low cycle is all to buy imo!

If this model proves to be valid, then Bitcoin could see a range-limited trading period until July this year, when the model's spring period could generate strong upward movement.

Price of BTC today | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Thuy Trang

Bitcoin Magazine

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