Members of the crypto community, analysts, investors, and traders alike are all consumed with analyzing charts, both current and historic, hoping to find early signals that the bottom of ₿itcoin’s now longest ever bear market is in.
One particular prominent chartist and trader, believes that is due for a powerful bounce soon, and further suggest that the monthly MACD has started to signal that the bottom of the 2018-2019 bear market may be in, if patterns witnessed in previous bull-bear cycles are repeated.
bitcoin Ready to Bounce? Traders Watch the 200-Day Moving Average
has been stuck in a phase of stability typically not seen in the extremely volatile asset. Tightening trading ranges and dwindling volume often suggest that price consolidation is occurring, and traders are sitting by the wayside in anticipation of the .
The last time ₿itcoin and price consolidation, price eventually important and repeatedly tested support at $6K, and declined nearly another 50% toward a low of roughly $3,150. At the low, ₿itcoin bounced off the 200-day moving average (200MA), but general weakness by bulls have caused the price of the number 1 crypto by market cap to drift back toward the critical support indicator.
Ready for the b b b b bounce?
— dave the wave (@davthewave)
While many analysts are claiming the , bearish volume is diminishing and ₿itcoin is in contained in a bullish price pattern: the falling wedge.
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Prominent crypto trader and chartist is expecting a major bounce the closer ₿itcoin gets to the 200MA, and points to the 2014-2015 bear market’s multiple bounces off the widely used trading indicator.
Looking at historical charts, ₿itcoin bounced numerous times it touched the important moving average. If history repeats, a strong bounce should occur within the coming days.
Keep it rational contra the sentiment.
— dave the wave (@davthewave)
Monthly MACD Could Indicate ₿itcoin Bottom Is In
By looking closely at the past, oftentimes patterns can be discovered that can help traders to better anticipate upcoming movements. The 200MA is an indicator traders are currently watching closely due the current price’s proximity to it. However, there are dozens of other indicators that traders can use to help determine what the market might do next.
Where have all the contrarians gone?
Here’s the monthly MACD, probably the scariest indicator for the bulls… and yet it’s signaling the bottom insofar as the two corrections are to be compared.
.
— dave the wave (@davthewave)
And while sentiment is at extreme lows and many are , the monthly MACD has entered a zone that has previously indicated the bottom of the last bear market. It doesn’t quite suggest a new bull run is right around the corner, as the bottoming process can take weeks to months. However, if history were to repeat itself, will have already begun that process and bulls can breath a sigh of relief.
Published at Thu, 07 Feb 2019 20:07:04 +0000
