• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

Bitcoin Indicator That Precedes Major Bull Runs Flashes Again

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0
Advertisement

Bitcoin has fallen by almost 3.5 percent after establishing its year-to-date high at $15,977 last week. But despite risks of extended downside momentum looming, a fundamental indicator sees the cryptocurrency in a strong buying zone.

The so-called “All Exchange Inflow Mean,” or MA7, measures the average Bitcoin deposits made across all exchanges on a 7-day timeframe. When the metric tops out, Bitcoin signals a rebound to the upside, at least according to the indicator’s creator CryptoQuant, a data aggregation platform.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Exhaustion in Bitcoin inflows means that traders are switching their selling sentiment to “HODL.” They keep lesser and lesser cryptocurrency units in their exchanges’ wallets that leads to lesser liquidations. The CryptoQuant chart below illustrates the relationship between the Bitcoin price and MA7.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin Inflow and price correlation. Source: CryptoQuant

The latest instances show that Bitcoin trends upward on signs of a pullback from the MA7 indicator. Most recently, the cryptocurrency rallied by more than 200 percent after MA7 topped out in March 2020. The results were similar in late 2019 and late 2018.

“After the price plunge, there have been subsequent exchange inflows by whales for two reasons. 1/ In the bull market: To sell it at the local high. They sell when the retail investors are active on exchanges. 2/ In the bear market: To sell it if the unusual fear-sell happens,” explained Ki-Young Ju, the CEO of CryptoQuant.

‘The latest MA7 readings show that Bitcoin is still in a strong buy zone,’ he added.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Bitcoin Technical Outlook

Analysts away from on-chain fundamentals predicted a similar bullish outcome for Bitcoin but based on technical indicators. A pseudonymous daytrader noted the cryptocurrency rising upward inside a range that appeared like an Ascending Triangle.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin trade setup, as illustrated by PostXBT. Source: BTCUSD on TradingView.com

In retrospect, an Ascending Triangle in an uptrend is a bullish continuation pattern. The price rises while staying above the upward slope of the Triangle. Meanwhile, it tests the Triangle base as resistance for a potential breakout move to the upside. If it happens, the price rises by as much as the maximum length of the Triangle.

“The level I marked out for a retest is getting chopped up to hell,” the analyst said. “Dismissing it and focusing on [the] resistance at the highs. Ascending triangle forming, which is typically bullish. Redline marks where a break in market structure would appear. Bullish whilst we’re above.”

Risks

A majority of downside risks Bitcoin face now lies outside the technical purview.

One of the major macro catalysts that could drive the cryptocurrency lower is a no-stimulus scenario. Expectations of the Republicans holding a majority in the US Senate could delay President-elect Joe Biden’s plans to introduce a massive coronavirus relief package.

At the same time, Pfizer’s successful coronavirus vaccine trial expects to decrease investors’ appetite for safe-haven assets. That also poses risks for Bitcoin as it trades near its three-year high – an attractive selling area.

Meanwhile, trader Koroush AK reminded:

“A 50% retracement is healthy during an uptrend. In fact, we would need to go below $14,000 for my bias to shift. So long as the trend stays intact, I will be favoring longs and aggressively longing dips.”

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Legalization Pushed By Mexican Senator, Despite Central Bank’s Opposition

2 mins ago
Oslo Freedom Forum, Lyn Alden screenshot

3 Lessons From The Oslo Freedom Forum: BTC Is Different – Neigut, Alden, Feinstein

8 hours ago
Bitcoin

Bitcoin Funding Rate Turns Deep Red, Short Squeeze Soon?

14 hours ago
El Salvador

El Salvador, Unfazed By The Bear Market, Buys 80 Bitcoin – Will Others Do The Same?

2 days ago
Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

3 days ago
North Korean Hackers

North Korean Hackers Suspected Of Perpetrating $100 Million Harmony Attack

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.