- Bitcoin has embarked on a strong rally over the past few days that has brought from the $9,800 lows to $11,500.
- This is an over 15% rally that has brought the coin above crucial technical levels.
- Analysis predicts that Bitcoin is set to continue its surge to the upside.
- The analysis shows an imminent reversal in the one-day MACD, coupled with Bitcoin moving above a critical moving average.
Critical Bitcoin Buy Signal Is About to Appear
He shared the chart below on October 11th, which shows that Bitcoin is forming a number of critical signals on its one-day chart. These include but are not limited to, the one-day MACD about to cross bullishly and a momentum indicator printing a “buy” signal.
This is relevant because the last time this signal appeared was in late July, prior to the $3,000 move that brought the asset above $12,000.
Chart of BTC's price action since the start of 2020 with analysis by crytpto trader CryptoNite (@Teaching_Crypto on Twitter). Chart from TradingView.com
Fundamental Trends Supporting Upside
There are fundamental trends supporting the expectations for upside in the cryptocurrency market.
Just last week, Square announced that it had deployed $50 million from its balance sheet to buy Bitcoin. Square is an international fintech company that has a valuation of approximately $80 billion. $50 million represented 1% of the firm’s total assets.
Square released a whitepaper on how it managed to complete this purchase, then store the cryptocurrency. It also discussed why it bought Bitcoin, mentioning the ongoing macro trends as reasons to own this asset.
Tyler Winklevoss of Gemini believes that this $50 million BTC purchase is the start of a wider trend of corporations investing in the asset.
He went as far as to say that he thinks there will be a wave of capital, a tsunami in fact, that will enter Bitcoin over time.
“First, it was @michael_saylor and publicly traded @MicroStrategy buying $425million of #Bitcoin. Today, it is @jack and @square buying $50million of bitcoin. Tomorrow, it will be another visionary leader, and another, and another…the tsunami is coming”
In the past, Winklevoss has said that Bitcoin’s fundamentals are better than ever due to macroeconomic trends. He specifically cites the ongoing trend of money printing, which is driving the intrinsic value of a scarce and digital asset like BTC to the upside.
Photo by Jason An on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Crucial Bitcoin Buy Signal Last Seen at End of July Is About to Appear