Bitcoin may head higher in the coming sessions based on its price action’s similarities with a fractal from June 2020.
First spotted by TradingShot, an independent trading signals provider, the fractal boasts about a support level near $9,000 that stood firm between June 25 and July 21 this year. Traders attempted to break below the floor for 26-days straight but failed every time owing to a higher buying sentiment around it.
Meanwhile, the same period saw a so-called “LMACD Squeeze.”
Strong Bitcoin Accumulation
In retrospect, LMACD stands for Logarithmic Moving Average Convergence Divergence, a technical indicator that shows the relationship between two moving averages of an asset’s price. Meanwhile, the term ‘Squeeze’ points towards a big breakout move, based on Bitcoin’s historical reaction to the growing proximity between Signal Line and MACD output.
The last occurrence of LMACD Squeeze coincided with Bitcoin’s consolidation above the $9,000 level. Later, the cryptocurrency underwent a massive breakout move towards $10,500.
TradingShot noted Bitcoin in a similar upside setup as the cryptocurrency attempted to maintain a price floor above $10,000. At the same time, it logged a similar LMACD Squeeze scenario, leading the chartist to expect a lengthy bull run ahead.
The statement also appeared as BTC/USD struggled to break above a technical price ceiling near $10,400 despite repeated attempts. The pair on Sunday briefly closed above $10,500 only to pare those gains entirely.
The pullback brought BTC/USD back inside the $$10,00-10,400-wide trading range.
Some observers decided to watch macro fundamentals to anticipate Bitcoin’s next moves. Tyler Winklevoss, the co-founder of US-based Gemini crypto exchange, cited the European Central Bank’s monetary policy meeting on Thursday to make a bullish case for the cryptocurrency.
Meanwhile, Kevin Svenson expressed his concerns over a bearish pullback in the US stock market. The analyst stated that a further correction in the S&P 500 would put Bitcoin en route to lower levels. (Read more: A Bearish Reversal in Stock Market May Bleed Bitcoin)
Bitcoin and the S&P 500 rose in tandem from their mid-March lows, their rallies led by the US Federal Reserve’s relentless bond-buying and lower interest rates.
BTC/USD was trading 13.43 percent lower from its year-to-date top near $12,500. The S&P 500 was down 6.89 percent.
Originally from Bitcoinist.com https://ift.tt/3bZCIoK
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