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Key Bitcoin (BTC) Indicator Hints That A Bull Run Is Rapidly Approaching

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.

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, 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.”

Title Image Courtesy of Cristian Escobar Via Unsplash 

The post Key Bitcoin (BTC) Indicator Hints That A Bull Run Is Rapidly Approaching appeared first on Ethereum World News.

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Are The Bitcoin Bulls Back? Brian Kelly Weighs In

As reported by Ethereum World News, the cryptocurrency market has been on a surprising tear over the past 24 hours, with a majority of assets posting gains of upwards of 6-7%. At the time of writing, Bitcoin stands at $6,400 after a brief step over the $6,500 line, while a majority of altcoins have seen a return of upwards of 5%. Some altcoins, like Nano, have had an astounding day, with bulls pushing the price of the cryptocurrency up by 25% or more.

Although the cryptocurrency market may have been on thin ice before this recovery, the ice isn’t so thin now, with Bitcoin establishing lines of support at higher lows.

On Wednesday, Bria’s “Fast Money” segment covered this recovery, with Brian Kelly, CNBC’s in-house crypto analyst, doing his best to reason why the market saw such a strong rebound.

Kelly opened up his section calling the market’s price action a “wild ride,” alluding the trials and tribulations the market has faced over the past few weeks. The analyst went on to draw attention to the performance of BTC before, during, and after the expiry of CBoE-based Bitcoin futures. According to statistics which CNBC has attributed to Justin Stanislaw, Bitcoin often does poorly in the days leading up to an expiry date, but sees a 10% move upwards in the week following a futures expiry.

Likening today’s expiry to a similar occurrence, Kelly noted that following the April futures expiry, Bitcoin saw a 20% gain in a mere 6 days. While not explicitly stating it, it’s clear to see that founder of the crypto-centric BKCM fund is expecting for Bitcoin to continue to experience positive bouts price action over the next few days.

To add fuel to the metaphorical bullish flame, Kelly, who has become a near-notorious permabull, added that Bitcoin may be undergoing a short squeeze, as shorts cover their losses in this potential trend reversal.

This sentiment sparked a question from another CNBC panelists, who asked if “these other cryptocurrencies” will bottom out along with Bitcoin. Kelly responded, stating:

They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF. But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 percent run on Bitcoin on a short squeeze, it should bring everything else back up.

So as is normally the case, it is likely that if Bitcoin runs, so will a majority of altcins, albeit with some variance in either the bullish or bearish direction.

However, some had their doubts, including CNBC trader Dan Nathan, who queried Kelly on if the capitulation phase of the market has “petered out.” Turning the question somewhat on its head, the cryptocurrency bull noted that $5,900 may prove to be a level of support if a sell-off continues. Nonetheless, it seems that with this episode of CNBC Fast Money passing by, Kelly remains as bullish as ever.

While some were quick to cast Wednesday’s bout of positive price action aside, calling it a classic bull trap, there are some optimists who are convinced that this might be the beginning of the end of the crypto bears.