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Calling the current bear market a mere "correction" is a pretty bold statement that would run up against counterpoints from many crypto investors who make fun of buying at the top of the recent Bitcoin bubble (BTC). However, according to a crypto badyst, Bitcoin is still on a "bull market in progress" and that the main crypto by market capitalization is nothing more than a correction, and that investors should accumulate at current prices .
The badyst also explains his hypothesis, which is largely based on the monthly moving average convergence divergence (MACD) oscillator, a moment-tracking indicator used by traders to signal important trend shifts.
Crypto Analyst: Which bear market? Bitcoins in a secular bull market
The popular cryptocurrency badyst, Dave the Wave, is heavily focused on the monthly MACD. His previous badysis suggested that the monthly MACD signaled the trough of the current bear market and that he had even rightly called the recent "bounce" of Bitcoin against the 200-week moving average – another indicator that traders use to predict price fluctuations of various badets.
Related reading | Crypto Analyst expects a multi-year bear market, the current range of Bitcoins (BTC) not accumulating
In his most recent charts, the badyst turns to the monthly MACD to get a good idea of where we are in the current bear market, to determine when a trough is reached and when the price of Bitcoin could rise again.
Just to put this "bear market" in perspective, the MACD on the monthly chart might not even enter bearish territory with this correction. pic.twitter.com/qgVlu1f2UN
– dave the wave (@davthewave) February 21, 2019
The badyst's position on the monthly MACD is that she has never reached the "bear territory" by falling below the midline of the chart. During the bear market of the BTC from 2014 to 2015, the monthly MACD plunged only briefly below the median line and immediately bounced upward, forming a V-shaped background on the chart.
To clarify, technically, something is bullish when the MACD is above the midline and bearish when it is below the midline.
– dave the wave (@davthewave) February 21, 2019
This could also indicate that the current downtrend still has a lot more leeway to fall into bearish territory, but Dave the Wave believes that, even though the momentum itself is "bearish over the month," the MACD "Stay in bullish territory" and that simply in a "correction".
Crypto Analyst: the bearish correction of Bitcoin could be "returned" to Bull
He further suggests that the monthly MACD histogram could eventually "turn around" and, if so, "that could very well mean the end of the correction" that Bitcoin is currently experiencing. Dave the Wave then explains that the delayed indicator is like a "super-giant" and once the momentum has picked up, there is "nothing left to do", it's "one way" .
Related reading | Crypto Analyst Expects Strong Bitcoin Bounce and Monthly MACD Signals Down
Pressed by his Twitter On his interpretation of the badysis, he warned against applying this "correction" in the short term and said investors "wanted to accumulate" when the correction will end and the uptrend is resuming.
This BTC is in a lay bull, that it is only a correction, that you do not want to short it and want to accumulate.
– dave the wave (@davthewave) February 21, 2019
Of course, it could be wrong about the monthly MACD, and the bearish momentum could drive the price of Bitcoin down. In any case, the monthly MACD should be a valuable tool for all traders who hope to take advantage of the trend.
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