Bitcoin Forms Pivotal Bullish Reversal Signal
One crypto trader recently identified that ach of Bitcoin’s RSI bullish channel breaks over the past year has resulted in strong trend continuation.
He shared the chart below, which shows that the last time Bitcoin’s RSI looked as it does now, the coin surged $2,500 in about the span of a week.
History repeating will mean that BTC is on the verge of a notable move higiher.
Chart of BTC's price action since the start of the year with analysis by crypto chartist CrypotHamster (@Cryptohamsterio on Twitter). Chart from TradingView.com
It’s worth noting that this same analyst is bearish on a short-term time frame. This notably does not invalidate the above analysis, though, which suggests that Bitcoin is in the middle of a medium-term breakout.
The reason why this analyst is bearish on a short-term time frame is that there are a number of signals on Bitcoin’s short-term chart that suggests a correction is imminent. Some of these reasons are as follows:
On-Chain Analytics Agree
On-chain analytics agree with the abovementioned trader’s sentiment that Bitcoin is embroiled in a medium-term reversal.
Willy Woo, a prominent on-chain analyst, wrote the following last week on BTC’s outlook:
His analysis suggests that whenever there’s a shift in momentum in the value of Bitcoin transferred on chain, a trend reversal takes place.
From what we know, the recent spike in on-chain transactions was likely the company MicroStrategy buying over 17,000 BTC in an over-the-counter transaction.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com The Last Time Bitcoin Formed This Signal, It Surged $2,500
Originally from Bitcoinist.com https://ift.tt/35RTogQ
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.