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It takes a long time for a trend to reverse. There can be bull traps and fake outs as we witnessed during 2018 when things were on a downward slope. One long term technical indicator has just turned green and the last time it did so, a two year up trend followed.
Bitcoin Holding Gains
Since its surge towards $9,000 yesterday, Bitcoin has held onto its gains and traded above $8,700 for the best part of the past 24 hours. An intraday high of $8,890 was hit a few hours back before BTC returned to its new support zone of $8,770. Daily volume is still a high $27 billion and a new consolidation level appears to be forming.
Analysts are generally in agreement that BTC is more likely to move up to $9,600 than suffer a huge correction. Full time trader going by the moniker ‘CryptHawk’ has looked at the charts and noted the 0.382 Fibonacci level is exactly here;
“$BTC – Hit my first target, not over here, we might go for 0.382, fibs are friends! 9,6k before retrace, if it does not stop we go for 0.5 at $11.6k to trigger the bullish scenario. If we stop on the 0.382, retrace blue box for the big REKT!”
$BTC – Hit my first target, not over here, we might go for 0.382, fibs are friends! 9,6k before retrace, if it does not stop we go for 0.5 at $11.6k to trigger the bullish scenario. If we stop on the 0.382, retrace blue box for the big REKT! #Crypto #cryptotrading #BTC #Bitcoin pic.twitter.com/6dgX3zgbio
— John | JustGo (@john_justgo) May 28, 2019
The possibility of a move to the 0.5 Fib level in such a short space of time is unlikely as markets have to correct. There has been a lot of talk of a 30 percent correction which, at current price levels, would drop Bitcoin back to the $6,000 zone.
Guppy Goes Green
A Guppy is a multiple moving average technical indicator that identifies changing trends, breakouts, and trading opportunities in price by combining two groups of moving averages with different time periods. Mixing both short and long term moving averages together gives a total of twelve. Trader Josh Rager has been looking at this and has noticed that the three day Guppy has finally flipped into the green.
“$BTC: 3-Day Super Guppy Flipped Green. I’ve been waiting for this for weeks to confirm the bull trend. While the 1-Day Guppy can give fake-outs, the 3-Day is a nice signal for continuation and that dips are buying. The last time the 3D flipped green it led to a 25 month uptrend,”
https://twitter.com/Josh_Rager/status/1133175468469968896
The last time this indicator flipped into the green was late 2016 and that initiated an uptrend which lasted over two years. When asked about the pullback that has yet to occur he added;
“I have suspected a 30% one… $9600 we could still see something pull back to $8k. I think a pull back near low $7ks a buy. That could be weeks. Tough to say but yes there should be pull backs as we uptrend,”
With Bitcoin grinding ever higher investors may never see those low levels again, how many are now wishing they had loaded up at $3,500!?
Image from Shutterstock
