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Bitcoin in Bull Run, according to the indicators
Key technical indicators tell us that Bitcoin (BTC) is in a distinctly bullish trend. As analyst Josh Rager pointed out on Monday, the Super Guppy, an indicator to determine key trends and levels, on the three-day chart of cryptocurrency has gone green. Although this sounds like a random technical event, especially because the Guppy is not a common indicator, Rager suggests that it confirms the upward trend going on.
He adds that, if the one-day iteration of this indicator can give "pretense", the three-day Super Guppy is a great way for analysts to determine trends and troughs in the market. # 39; s purchase. Rager reminds his investors that the last time Guppy was over a three-day period looked like nothing, a 25-month uptrend ensued, pushing bitcoin from $ 200 to $ 20,000 into the now-historic movement .
This is not the only positive sign that the leading digital asset has found. According to the previous reports of Ethereum World News, analyst Nunya Bizniz said that with Bitcoin closing its weekly candle well above its moving average a week Monday morning, it would be fair to say that "crypto winter" is finished. Bizniz points out that every time Bitcoin's week-long chart looks like it was in the past, a lightning race was planned for BTC. Many hope that Bizniz and Rager are right.
Drawdown Before Rally?
Some, however, are not too sure that a bullish trend in its own right is on the way. In fact, some postulate that a reduction is coming in for the main cryptocurrency. As we had suggested in a previous report on the state of the cryptocurrency market, parabolic advances never end well.
Peter Brandt, a legendary commodity trader, a confident analyst that Bitcoin will succeed at about 50%, notes that with this raid of nearly $ 9,000, Bitcoin has entered the "FOMO phase" of this parabolic advance . This suggests, for those who do not know, that the advance could soon reach a local peak, which means that a decline is near.
In fact, Brandt suggests that "once a crypto-exhausted bulls majority will capitulate … a larger correction will likely be made." The trader did not mention when or where such a correction would begin, but his targets for this move are $ 9,320. and $ 10,600.
This does not mean that the cryptocurrency market can still pull higher from here. Alex Krüger, renowned analyst recalled his supporters that Bitcoin still has room to run. In the tweet below, he said that the last time BTC made this overbought in its Daily Strength Index (RSI) on December 6, 2017, a "parabolic movement had followed". In fact, BTC increased from $ 13,700 to $ 20,000 over the next ten days.
This suggests that the BTC is not only able to rally strongly in the territory of "overbought", but it can also shock the expectations of investors.
Photo by Eric Han on Unsplash
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