A large number of traders and investors would have said that the Bitcoin bull market was confirmed when BTC price surged to $8k two weeks ago. Zooming out to the one year chart shows signs of a recovery, and two technical indicators have just suggested that things have finally turned around for the longer term.
Traders are still waiting for a pullback that has yet to materialize. Bitcoin price has held on to gains yet again and has started to consolidate around $8,750.
BTC price [coin_price] hit resistance again at just over $8,900 before returning to its channel a few hours ago. At the time of writing it was trading at $8,790 with several Dojis forming on the one hour chart.
Four Closes Above The 50-Week MA
Crypto aficionado going by the twitter moniker ‘Nunya Bizniz’ has noticed that Bitcoin has closed four consecutive weekly candles above the 50-week moving average;
BTC: Yesterday’s close marks 4 consecutive weekly closes above the 50 week moving average. Four weekly closes above the 50 week MA has never failed to initiate a bull run.
BTC: Yesterday's close marks 4 consecutive weekly closes above the 50 week moving average. Four weekly closes above the 50 week MA has never failed to initiate a bull run. pic.twitter.com/EM8UaeWVrD
— Nunya Bizniz (@Pladizow) May 27, 2019
The last two major bull runs were initiated by this pattern so it is indeed a very bullish indicator. Similarly, the multiple moving average Guppy has also just flashed green for the first time in over a year. This technical indicator takes a number of short and long term moving averages and combines them.
The ‘Three day super Guppy’ is a longer-term trend indicator and its shift into the green could also be a sign that a larger uptrend is forming.
Trader Josh Rager has been analyzing the charts;
$BTC: 3-Day Super Guppy Flipped Green. I’ve been waiting for this for weeks to confirm the bull trend. While the 1-Day Guppy can give fake-outs, the 3-Day is a nice signal for continuation and that dips are buying. The last time the 3D flipped green it led to a 25 month uptrend.
https://twitter.com/Josh_Rager/status/1133175468469968896
Bitcoin Price Needs to Correct
The two long term trend indicators are confirming that bigger things are in store for Bitcoin and crypto markets. The parabolic chart pattern though is as unhealthy now as it was in December 2017. A correction needs to occur and many are waiting for such to provide an opportunity to load up before things really take off.
For the past two months, Bitcoin has dominated the markets and is still at its highest share since the massive bull run of late 2017. It has turned the tide on the crypto winter at the expense of the altcoins and technical indicators appear to be aligning for greater gains in the coming months.
Has the Bitcoin bull run actually started or will it dump again? Add your thoughts below.
Images via Shutterstock, Tradingview.com
