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It appears that Bitcoin’s medium-term outlook is rapidly starting to favor bulls, with reports upon reports coming in indicating that the technicals and fundamentals imply that a return to a bullish phase is on the horizon for BTC.
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Bitcoin Technical Indicators Continue to Flip Green
According to a recent tweet from full-time cryptocurrency trader Crypt0mer, Bitcoin’s one week chart recently printed an extremely bullish signal: the one-week Klinger Oscillator, which tracks volume and price to determine trends, has printed a buy for the first time since February 2019, when BTC was trading around $3,700. He remarked that this is a sign that the bear correction is over.
Klinger signaling a buy on the weekly, last time it did that was around Feb '19 around 3.7keks; the bera correction might be over -or- it can be a false signal which happened before, need to keep an eye on it. 👀 $BTC pic.twitter.com/SH1vwt9QE2
— CƦYP₮ΘɱΞƦ 🦬🔥 (@Crypt0mer) December 28, 2019
Indeed, once the one-week Klinger crossed into the green last time, BTC rallied from $3,700 to $14,000 in the months that followed, marking a 300% gain in a relatively short period of time.
This comes shortly after Scott Melker, also known as the Wolf of All Streets, observed another positive sign on Bitcoin’s weekly chart. The sign was a “massive bullish divergence in oversold territory on Stochastic Relative Strength Index.”
This is especially notable for bulls as it has been seen on three important turning points in Bitcoin’s recent price history: the first preceded a bear market rally from $6,400 to $9,900 in mid-2018, the second preceded the 330% jump in the Bitcoin price seen from December 2018 to June 2019, and the third predicted the move from $7,400 and $10,400 that took place just weeks ago.
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Considering the historical bullish significance of this signal along with the positive-trending Klinger, there’s a high likelihood that BTC could begin to gain bullish momentum on a medium-term time frame in the coming weeks.
That’s not to mention that according to Su Zhu, the chief executive officer of Three Arrows Capital, the premium seen on BTC/USDT pairs compared to the stock BTC/USD markets, coupled with overall price action, suggests there are “clear signs of accumulation and money flow back into risk.” He thus concluded that he wouldn’t be surprised to see the leading cryptocurrency surpass $9,000 — 25% higher than current prices — before the end of January.
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