Following Bitcoin’s bottom at $3,100, the entire cryptocurrency community has expected the asset to launch straight away into a full-blown bull market, however, the current price action across the crypto space has been anything but bullish.

But according to one analyst, it all depends on the November monthly candle close. Depending on how the monthly closes, a golden cross could occur on weekly timeframes and could signal significant upside in the coming months ahead.

November Monthly Close Is Make It or Break It For Bitcoin

Bitcoin price right now is struggling to find support after a parabolic selloff took the price of the first-ever cryptocurrency from $10,500 to as low as $6,500 in a month’s time. The powerful downtrend has the crypto market shaken up once again, demonstrating extreme fear, uncertainty, and doubt.

Related Reading | Crypto Market Fear Index Suggests Bitcoin Price Has Further To Fall 

But as long as bulls can defend the November “important monthly close” then the bull market will still be on, according to one prominent crypto analyst.

In a chart shared by the analyst, Bitcoin can be seen going through accumulation phases, before a bear trap plays out as each cycle’s ‘bottom’. After that, there’s a short impulse wave up, taking the price of the cryptocurrency above the 20-week simple moving average which acts as a mid-line to the Bollinger Bands technical indicator. There, in what is expected to be the next phase in price action, the asset begins to trade sideways before the full bull run begins.

Technical Indicators, Trendlines, and More Signal Bull Market Ahead

So long as Bitcoin is above the 20SMA, which is currently is, the analyst says that Bitcoin is in a bull market. The Relative Strength Index, another popular technical indicator crypto traders rely on, is also above 50 on weekly price charts, acting as yet another signal that Bitcoin’s bull run is still in the making, despite the recent downtrend.

Bitcoin is also still respecting a long-term diagonal bull channel, dating back to before the 2014-2015 bear market. Bitcoin’s correction has just touched the diagonal bull line as support and confirmed it as such.

Lastly, the analyst has Bitcoin trading within an ascending triangle pattern, which typically break to the upside. Combine all of these bullish factors with a bullish November candle close, and then the analyst says that bulls will be rewarded with a golden cross of the 50-week moving average and the 100-week moving average as early as next week.

Related Reading | Time to Rally? Institutional Bitcoin Price Charts Signal Buy 

Golden crosses are typically strong bullish signals, and occur when a short-term moving average like the 50WMA crosses above a long-term moving average such as the 100WMA. Golden crosses often signal that a downtrend selloff has run out of steam, and that upside is likely ahead.

Featured image from Shutterstock

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here