Bitcoin Price
Same Technical Signal That Predicted Bitcoin’s 250% 2019 Rally Returns
Nick Chong | Aug 01, 2020 | 04:00
- Bitcoin is up approximately 20% in the past seven days as it pushes $11,400 for the second time in the past week.
- Bulls are seemingly in control as the cryptocurrency remains above the pivotal $10,500 resistance.
- There are technical signals that recently formed that were seen at the start of BTC’s previous macro rallies.
- History rhyming will mean that the leading cryptocurrency soon begins a macro bull market that will take it to new highs.
- Further corroborating the bullish narrative are the fundamentals of Bitcoin, which some commentators say are stronger than ever before.
Bitcoin Forms A Series of Positive Macro Signals
Bitcoin is forming pivotal macro buy signals after trending higher over recent months. These signals suggest that the leading cryptocurrency is on the verge of a longer-term bull run that will likely outlast the rally seen in 2019.
One trader shared the chart below on July 31st, noting that the Super Trend for Bitcoin has flipped green on the weekly chart. Commenting on the indicator’s importance, the trader who shared the chart wrote: “The supertrend went green on the weekly. Probably no big deal. It’s not like this indicator has marked major macro bull & bear cycles in the past.”
Chart of BTC's macro price action with the so-called Super Trend indicator by trader Byznatine General (@Byzgeneral on Twitter). Chart from TradingVIew.com
This is one of many signs that Bitcoin is at the start of a larger bull trend.
Earlier in July, Bitcoin’s “Hash Ribbons” indicator formed a “buy” signal for the first time in many months. Digital asset Charles Edwards, who created the indicator to give investors understanding of long-term BTC cycles, wrote:
“#Bitcoin Hash Ribbons “Buy” signal just confirmed. The post-Halving signal is particularly special. It will probably be a very long time until the next occurs. …and so the great bull run begins.”
Chart of the confirmation of the Bitcoin Hash Ribbons "buy" signal from TradingView.com
This signal is pivotal for bulls as each time it has appeared historically, parabolic surges have followed. Charles Edwards shared the table seen below, which indicates that every instance of the Hash Ribbons printing a “buy” averaged gains of 5,520%.
Graph of Bitcoin's gains in the wake of a Hash Ribbons "buy" from Charles Edwards
Healthier Than Ever Before
Supporting the bull case are fundamentals, say market commentators. Analysts at BlockTower Capital, a crypto and blockchain fund, commented in May that the “macro case for Bitcoin has never been more obvious.”
Backing this optimism, the analysts at the firm cited a number of trends. They include but are not limited to: a decrease in trust in traditional institutions, the collapse of emerging markets and their currencies, and an increase in digitization.
Featured image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Same Technical Signal That Predicted Bitcoin's 250% 2019 Rally Returns
