Bitcoin Could Soon Undergo Retracement: Trend Indicator Shows
Bitcoin has undergone a strong rally since the March lows. The cryptocurrency more than tripled, rallying from $3,500 to highs of $12,500 in August. The coin now trades at $10,800, slightly below those highs but still far above the March lows.
Unfortunately for bulls, a crucial trend indicator has formed that suggests the rally that Bitcoin has undergone may soon end.
The indicator, the parabolic stop and reversal (parabolic SAR), is about to print a textbook “sell” signal after the strong move higher. Should Bitcoin close its weekly candle $10,000 in the coming weeks, it will print this sell signal.
Previous sell signals have been disastrous for prior Bitcoin bull trends. Just prior to the March capitulation crash, a sell signal appeared. And near the $14,000 highs in 2019, just two weeks after it reached that level, it also formed this sell signal.
Commenting on the indicator, a crypto trader shared the chart seen below and also wrote:
Chart of BTC's price action since the middle of 2017 with a parabolic SAR analysis by crypto analyst CryptoHamster. Chart from TradingView.com
Bulls In Control on a Macro Time Frame
Bulls remain in control on a long-term basis despite the potential medium-term top that is forming as per the indicator.
Crypto Quant, a blockchain analytics firm, recently signaled that 10 out of 11 of its long-term on-chain indicators are currently bullish.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Sell Signal Last Formed Prior to March Bitcoin Crash Is Inching Close
Originally from Bitcoinist.com https://ift.tt/3kOODJ5
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