Following the recent bullish momentum experienced by the entire cryptocurrency markets that was driven by bullish Bitcoin (BTC) price action, the markets have now experienced a somewhat minor pullback that has led most cryptos to drop.
Although the markets are currently taking a breather, one widely used indicator may signal that Bitcoin is ready to surge nearly 200%, which, if true, would decisively mark the end of the persisting bear market, and would send the cryptocurrency back towards its 2017 highs.
Bitcoin Stable Around $5,000 After Dropping Yesterday
At the time of writing, Bitcoin is trading down nearly 1% at its current price of $5,010 and is down from its recent highs of $5,300. Although BTC’s recent drop did put a wet blanket over the incredibly bullish sentiment that came about after Bitcoin’s recent price rise, it is important to note that it is still up significantly from its weekly lows of roughly $4,000.
The recent upwards price surge allowed Bitcoin to break above multiple key resistance levels that BTC had struggled to break above on multiple occasions over the past several months.
Another key technical level that the cryptocurrency broke above during its recent price climb was its upper Bollinger Band – which had not been broken above since the bear market first began.
CryptoHamster, a popular cryptocurrency analyst on Twitter, spoke about this latest revelation in a recent tweet, noting in his chart that a similar break above the upper BB occurred in 2015, which was proceeded by a correction towards the lower BB before it began an upwards ascent.
“Bitcoin made it for the first time during the whole bear market. Prepare for a possible correction and then be ready to take off,” he noted.
Bitcoin made it for the first time during the whole bear market.
Prepare for a possible correction and then be ready to take off!
🔥🔥🔥$BTC #bitcoin pic.twitter.com/8iG8wODE2P— CryptoHamster (@CryptoHamsterIO) April 4, 2019
Could BTC be Ready to Surge Nearly 200%?
Although the recent upwards surge is relatively small compared to what has been seen in years past, one technical indicator is now signaling that Bitcoin could be ready to surge nearly 200% in the near-future.
Fundstrat Global Advisors explained this possibility in a recent research note that was shared by MarketWatch, and explained that Bitcoin’s surge above its 200-Day Moving Average is followed by a large upwards swing 80% of the time, with a potential surge being as large as 193%.
“Based on BTC’s trading history, a move above the 200D for BTC is meaningful statistically. When BTC is above its 200D its win-ratio is 80% compared to a mere 36% when it is below its 200D,” the analysts explained, referencing the below chart.
When considering the technical strength that Bitcoin incurred during its recent price surge, it may be reasonable to assume that its 2018 lows of $3,200 are in fact a long-term bottom, and that the persisting “Crypto Winter” is truly over.
Featured image from Shutterstock.
