Bitcoin Bull Narrative Gains Strength as Key Sell Signal Dissipates

Nick Chong

Last Updated: June 11, 2024 7:31 am

2 mins read

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As reported by NewsBTC just days ago, the opening month was harrowing for Bitcoin (BTC) for one reason: the open of the December candle for the cryptocurrency’s price triggered a “sell” signal on the Market God v7 indicator, designed by crypto analyst Thies. The analyst remarked that he designed the indicator to “eliminate” emotion from his trading to instead rely on algorithm-driven signals and plans to “short the corn.”

This was seen as bearish, as the last time the indicator gave the signal was in April, which was prior to the move that took the price of Bitcoin from five digits to $3,150, before printing a buy signal near the bottom.

Though, according to Thies’ latest check of the indicator, the “sell” signal has dissipated as bears have failed to continue to push lower the price of Bitcoin.

👀$BTCUSD pic.twitter.com/Pm3l3HoE4r

— Crypto Thies (@kingthies) December 7, 2019

Importantly though, the Moving Average Convergence Divergence (MACD), which is a “trend-following momentum indicator that shows the relationship between two moving averages of a security’s price” (Investopedia), remains in a bearish crossover formation on the one-month Bitcoin chart.

The last time this took place was in May of 2018, prior to Bitcoin’s extended bearish move from the $10,000s to the $3,000 in the seven-odd months that followed.

Regardless, the disappearance of Thies’ “sell” signal on the one-month suggests that bulls are starting to gain strength on a macro level once again, presumably in anticipation of the Bitcoin halving of May 2020.

Bitcoin Bulls Gaining Strength

Thies’ signal, or lack thereof rather, seems to show that a bullish confluence is building for Bitcoin investors.

On Friday, Hans Hauge, a senior quantitative researcher at Los Angeles-based crypto fund Ikigai Asset Management, issued an extensive Twitter thread on why Bitcoin’s outlook remains wildly positive heading out years into the future.

https://twitter.com/hansthered/status/1202980876176351232

First, he looked to a recent analysis from Deutsche Bank, in which the global banking giant estimated that the number of users of Blockchain Wallet (blockchain.com) could surmount over 200 million — around six times higher than where the sum currently is — by 2030. (The same report also included an opinion from a Deutsche Bank analyst, who said that Bitcoin could replace fiat should issues persist in the financial system.)

Secondly, he quipped that the (former) chief executive of Bitcoin exchange and infrastructure firm Bakkt is now a sitting U.S. Senator.

And lastly, he noted that BTC is “actually pretty close to where it should be,” in reference to a model that takes the number of “Bitcoin transactions ever confirmed and use that as an input into a log-scale linear regression model.”

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.