A technical indicator indicates that bitcoin (BTC) is ready to increase by almost 200%

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After the recent uptrend felt by all the cryptocurrency markets, driven by the bullish action on Bitcoin prices (BTC), the markets experienced a somewhat minor downturn which led most crypto the decline.

Although markets are currently running out of steam, a widely used indicator could indicate that Bitcoin is poised to jump nearly 200%, which, it is true, would decisively mark the end of the persistent bear market. and would return cryptocurrency by 2017 highs.

Bitcoin stable around $ 5,000 after falling yesterday

At the time of writing, Bitcoin is trading down almost 1% at its current price of $ 5,010, down from recent highs of $ 5,300. Although the recent drop in BTC has put a damp hedge on the incredibly bullish sentiment sparked by the recent rise in Bitcoin prices, it is important to note that it is still up sharply from its weekly low of around 4 $ 000.

The recent price spike has allowed Bitcoin to exceed the multiple key resistance levels that BTC had struggled to overcome several times in recent months.

Another key technical level that cryptocurrency has surpassed during its recent price hike is the upper Bollinger Band – which was not out of date since the start of the bear market.

CryptoHamster, a popular cryptocurrency analyst on Twitter, talked about this latest revelation in a recent tweet, noting in his chart that a similar breakup occurred over the top BB in 2015, which resulted in a correction towards the lower BB before it started to rise. ascent.

"Bitcoin did it for the first time during the entire bear market. Prepare for a possible correction and get ready to take off, "he said.

Could the BTC be ready to increase by almost 200%?

Although the recent rise is relatively small compared to recent years, a technical indicator now indicates that Bitcoin could be ready to increase by almost 200% in the near future.

Fundstrat Global Advisors has explained this possibility in a recent research note shared by MarketWatch and explained that the rise of Bitcoin above its 200-day moving average is followed by a sharp rise in 80% of case, with a potential increase of up to 193%.

"Based on BTC's trading history, an evolution above 200D for BTC is statistically significant. When BTC is above 200 D, its gain ratio is 80%, compared to 36% when it is below 200 D, "analysts explained, referring to the graph below.

Moving Bitcoin over its 200-day MA could mean significant gains.

Given Bitcoin's technical strengths during the recent price spike, it is reasonable to assume that its $ 3,200 in 2018 is actually a long-term floor and that the enduring "Crypto Winter" is over.

Selected image of Shutterstock.



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