On November 25, Bitcoin price fluctuated in the range of $ 7,000 – $ 6,500 in a shocking move for traders. Since then, the cryptocurrency market has stabilized. Currently, BTC is nearly 15% higher than the low of a fateful day.
Bitcoin bottomed?
While this rebound does not completely show the bottom, some analysts are coming to the conclusion that it is likely that Bitcoin’s downtrend has stopped when it dropped to $ 6,500 by the end of last month.
On December 7, FilbFilb released the latest installment in his ‘Decentrader‘. He gave a confluence of signs on Bitcoin’s chart, implying that the cryptocurrency’s price outlook is starting to tilt to the bulls’ side, or at least BTC has bottomed out at $ 6,500.
Source: Filb Filb
In addition, a bullish cross is about to be formed by the 50-week and 100-week simple moving averages, while volume and price have dropped at the same time, suggesting a bullish reversal.
More pain ahead?
MACD
The daily MACD seems ready for a bullish cross. As can be seen from the chart above, the cross occurred that marked the end of the current bearish trend that digital assets have been experiencing since the bearish cross on November 9.
Source: Trading View
While the daily MACD cannot provide a projected time for the next bull run, at least it will move north for the time being.
The weekly indicator is most likely the best one can use to determine when to buy/sell Bitcoin. Since October 2016, only 8 crosses. Four bullish and four bearish, and we are currently waiting for a bullish advance.
Source: Trading View
The MACD is currently mimicking the same pattern around April / May 2018, a period that many cryptocurrency experts call a bottom.
However, it is still another 10 months before the next phase of a downtrend occurs.
Perhaps Bitcoin will experience this so soon?
RSI
The weekly RSI is also showing a similar pattern as April / May 2018. If the same pattern continues, the bottom will appear around May 2020.
Source: Trading View
The discount scenario is likely to repeat. The $ 6,900 level must be protected. If this level breaks, a strong sell-off will likely push prices down around the $ 2,700 area within the next 5-6 months.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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