Analysts explain why Bitcoin is ready to re-enter a bull market
Bitcoin has finally shown signs of life and is within 20 percent increased by two weeks. Although this recent price action has been dubbed a “relief rally” by some analysts, an increasing number of indicators suggest that BTC and the rest of the crypto market are about to return to a decisive upturn.
Has the bottom been reached?
In the past few weeks, analysts have struggled to answer the question whether the leading cryptocurrency will actually hit a macro low of $ 6 in mid-December. 400.
According to new analyzes, the bottom has been reached and the conditions for the next stage of upward growth have been created. Trader Byzantine General recently referred to the graph below.
I couldn't help but notice a pattern here.
This suggests the bottom is in. Pic.twitter.com/OoiwreHBZS
– Byzantine General (@ByzGeneral) 10 , January 2020
As he shows, Bitcoin's recent price action and week-long Relative Strength Index have followed exactly the same pattern as in the previous market cycle, with an RSI break below 40 in a bear market, a subsequent recovery rally and a perfect re-test of 40 to initiate the next bull market.
Not to mention that Murad Mahmudov, CIO of Bitcoin Fund Adaptive Capital, recently noticed on Twitter that BTC is definitely not going much further than it already did, because “as crazy as it sounds, the – 53 – percent decrease of $ 13. 888 at $ 6. 410 was not a complete bitcoin bear market, but rather a correction in the middle of the bull cycle ”.
This claim can be corroborated by the on-chain data from Mahmudov's partner, Willy Woo of Adaptive Capital, who tweeted that data on Bitcoin's investor activity shows clear signs of a revival in the bull market.
Are we in a $ BTC bear market?
No, we are in the re-accumulation phase of a bull market. pic.twitter.com/OcMyxA4EIY
– Willy Woo (@woonomic) 28. December 2019
Bitcoin is preparing to rise higher
While the bottom is being confirmed, are there any signals that Bitcoin will continue to rise soon? There are many for a number of prominent traders.
The “Lucid Stop and Reversal” (SAR) system recently printed a buy signal on the Bitcoin weekly chart for the first time since March 2019 .
This signal was incredibly accurate even on previous occasions, as it was 50 percent decline in Bitcoin by 6. 000 $ to 3. 150 $ was down and issued a buy signal when BTC in July 2017 was 2. 700 $, which was a 670 – percent recovery preceded.
As far as the less technical side of things is concerned, Bitcoin is now about four months before the next block reward cut called “halving”. Prominent investors, including former Goldman Sachs employees, have indicated that this event will affect BTC's supply-demand dynamics in a way that will drive prices up dramatically.
Text proof: cryptoslate