Bitcoin has undergone a strong rally over the past few months. From the March lows, the cryptocurrency has gained over 200%, rallying from $3,500 to $11,700 now.
While already impressive, the coin is about to form a pivotal buying signal that may suggest more upside is likely. The signal in question last formed when the cryptocurrency was trading under $1,000 at the end of 2016, prior to the 2017 exponential rally.
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Bitcoin Forms Pivotal Buying Signal
According to data from Crypto Quant shared by a crypto-asset analyst, Bitcoin is about to form a long-term buying signal. The signal is the Miners Reserve, which tracks the BTC reserves of entities tied to mining pools.
According to the chart, the indicator is poised to undergo a positive crossover, with the short-term moving average crossing below the long-term moving average.
This signal is important as it was last seen at the end of 2016, prior to Bitcoin’s 2,000% rally in 2017. This signal also preceded two other macro rallies that brought BTC exponentially higher.
The same trader pointed to a swath of other on-chain trends showing that the long-term trend is favoring bulls.
Chart of BTC's price action since the start of its trading around a decade ago with on-chain analysis by CryptoQuant. Chart shared by Coiner Yadox (Yodaskk on Twitter). Chart from CryptoQuant and TradingView.com
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Fundamental Trends Favoring Bulls
Fundamental trends favor Bitcoin bulls, analysts say.
Macro investor Raoul Pal recently said in an interview with publication Stansberry Research that Bitcoin is likely to reach a price of $1 million in the coming five years. He thinks that investment by institutional players will drive the cryptocurrency this far to the upside:
“Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money — just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”
Pal has said that he thinks Bitcoin may be the best investment in existence right now due to macro trends.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin to Soon Form Signal Last Seen Prior to 1,000% Rally in 2017