Long-Term MACD About To Flip Positive, BTC Could Rally
For much of 2018, the Logarithmic Moving Average Convergence Divergence () chart (one week) has remained under zero, signaling that bears are in control. However, as long-term-centric analyst Dave The Wave, this specific indicator, which is used to gauge ’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 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 seems bullish. Here are a few. Firstly, is currently in the midst of an ascending channel, marked by consistent higher lowers and higher highs. With continuing to hold this pattern with an impeccability, a move higher to potentially break out of the upper bound of the channel seems likely.
Next, the Stochastic Relative Strength Index (RSI) and the traditional RSI are both showing bullish signs, both accentuating that the crypto market isn’t overextended and thus has room to run.
Thirdly, is currently 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 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 , the average number of daily transactions involving 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, 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 and the number of transacted on-chain. A recent installment of Diar Newsletter has revealed that in February, $70.5 billion worth of value and 19.1 million were transacted on the . 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 averaged $7,000 – 35% higher than today.”
This growth has led some indicators, especially those championed by researcher Willy Woo, to signal that this and that may be poised to soon rally strongly.
On-chain statistics aside, the industry has recently seen an array of underlying developments. As by World News earlier today, Fidelity Investment’s trade execution product may allow for a massive capital inflow into . This, according to eToro analyst Mati Greenspan, could push up by “$1,000, $2,000, easily.”
Title Image Courtesy of Cristian Escobar Via Unsplash
Published at Tue, 07 May 2019 05:04:52 +0000
