Bitcoin recent pullback is actually a strong bullish signal, an analyst says
In a tweet, DonAlt says the prevailing bearish sentiment for BTC appears to be unwarranted.
“It’s very, very weird seeing sentiment be this bearish, with neutral or negative funding above $10,000. Don’t think I can remember a time where that has happened before.”
The trader explains that the recent BTC pullback is actually a strong bullish signal.
Currently looks like a simple retest of support, as long as we don’t crash in the next couple days, that’s typically bullish.”
The trader also highlights that the number one cryptocurrency has been outperforming traditional assets such as the S&P 500 and gold.
“SPX and GOLD put in a tiny bounce, BTC put in a huge one. Shows you where the strength is (was apparent even before the breakdown, hence my BTC will outperform comment).”
Analyst: Bitcoin remains stuck below its key 200-day MA
One level that has consistently, throughout history, proven to be trend-defining is the 200-day moving average.
Sustained bouts of trading above, or below, this level has contributed to assets like Bitcoin seeing multi-year trends.
“Bitcoin’s only enemy is the 200ema – resistance of cloud. Let’s break above please, I miss the smell of financial freedom,” he said.