The best time to accumulate Bitcoin as price hits $ 7800
When Bitcoin price surpassed $ 7,500 on November 27, an important long-term trend indicator shows this is a good period to accumulate BTC.
Since the Ecoinometrics team released the latest ‘Daily Bitcoin Mayer Multiple Report’ citing Mayer multiple, a ratio of Bitcoin price to the 200-day moving average, the Bitcoin price has skyrocketed past $ 7,800.
Over the past four days, the Bitcoin price has risen more than 18% against the US dollar, recovering strongly from a drop to $ 6,600.
Daily #Bitcoin Mayer Multiple Report
Nov. 29, 2019
BTC – US$ 7,595
Mayer multiple – 0.80
Mayer multiple lower than 79% of history.
— ecoinometrics (@ecoinometrics) November 29, 2019
Due to the intensity of the sell-off in the first three weeks of November, technical analysts have become cautious about expecting a prolonged recovery period for Bitcoin.
Popular trader DonAlt found that a week of recovery after a month of sell-offs could be seen as a clear sign of an upside rally.
If the Bitcoin price sustains above $ 7,700 and moves above major short-term resistance levels along with the upcoming monthly BTC candle opening, it is likely to lay the foundation for a solid recovery.
Bitcoin technical analysis
Bitcoin is currently trading just above the weekly resistance at $ 7,600, previously long-term support that was lost last week. The $ 6,500 price level is a relatively high level of volume history as seen on VPVR and has brought more than a 10% increase so far this week.
Weekly BTC/USD. Source: TradingView
Obviously, such a strong reaction is encouraging for the bulls, but from a neutral standpoint, the bears are looking for opportunities to sell Bitcoin when the price is retesting a breakdown.
Therefore, this is an important time for the market. The 100-week moving average was also lost last week, but it is currently being tested and will surpass the 50-week moving average next week, which has provided strong momentum for Bitcoin price in the past.
Meanwhile, the MACD indicator is still on a downward trend. Bitcoin needs to break through weekly resistance and seek support at the weekend to be considered a strong bull week for bitcoin, due to last week’s plunge.
The daily chart shows Bitcoin is still trending down and has bounced off an important cross trend line. The 25% diagonal is currently holding the price as resistance. It is worth noting that the price spike occurred when this level was removed and would likely be quick to test $ 8K.
Daily BTC/USD. Source: TradingView
Daily MACD clearly shows a trend change for the upside, with a MACD diagonal.
However, it is happening below zero, which is not as ideal as when it is above the rising territory. The moving averages have yet to cross.
Due to the nature of the price action reaching the tipping point, there will be traders who have entered positions and others willing to buy or sell at breakout points on either side. This liquidity is waiting on both sides in the context of incomplete models. The fluctuations that are expected on weekends can lead to some interesting price action.
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