Although the crypto markets have been in a firm uptrend over the past month or so, most major cryptocurrencies have begun incurring some levels of selling pressure over the past several days that appears to have put Bitcoin (BTC) and the aggregated market’s momentum in jeopardy.
Despite this, one respected technical indicator that has been closely watched by analysts in recent times is now signaling that the bear market ended when BTC broke above $7,000, and it would require a relatively large drop to put the crypto back into bear market territory.
Bitcoin Likely to See Further Gains in Near Future, Regardless of Current Instability
At the time of writing, Bitcoin is trading down nearly 3% at its current price of $8,460, down from 24-hour highs of over $8,700.
Although BTC’s near-term price action can largely be characterized as lackluster, and potentially bearish, it is important to note that it is only down slightly from its recently established year-to-date highs of just over $9,000.
At the current time, $9,000 remains a critical level that must be broken above in order for the cryptocurrency’s upwards momentum to extend further, as it was at this price point where Bitcoin incurred a massive amount of selling pressure that sent it reeling back down to the lower-$8,000 region.
Over a longer time frame, Bitcoin is still in a clear uptrend, and one well respected technical indicator actually signals that the crypto has exited bear market territory and is now entering the early stages of a bull run.
Josh Rager, a popular crypto analyst on Twitter, discussed this indicator in a recent tweet, explaining that the Super Guppy indicator signals that BTC may soon be in the throes of the next bull market.
“$BTC – 1 Week Super Guppy. After looking at the 3 Day Guppy chart, we confirmed a bull trend as it flipped green. Now we see the 1-week flip from red to grey signaling end of bear market after the price pushed 7k. Guppy is a lagging indicator but makes for strong confirmation IMO,” he noted, while referencing the below chart.
$BTC – 1 Week Super Guppy
After looking at the 3 Day Guppy chart, we confirmed a bull trend as it flipped green
Now we see the 1 week flip from red to grey signaling end of bear market after the price pushed 7k
Guppy is a lagging indicator but makes for strong confirmation IMO pic.twitter.com/VKFUk74CbM
— Josh Rager ? (@Josh_Rager) June 3, 2019
BTC Has Room to Fall Before Bulls Lose Their Strength
In a later tweet, Rager further explained the importance of the data elucidated by the aforementioned indicator, explaining that he believes that bulls will still have enough strength to push the crypto higher so long as it holds above the $5,500 area on a weekly time frame.
“With Bitcoin and crypto markets, anything can happen as these markets are easily manipulated. But until we close below $5500 area on a weekly level, I’ll remain bullish. Let’s not forget that we just closed out the strongest monthly candle on the Bitcoin since 2017,” he said.
With Bitcoin and crypto markets, anything can happen as these markets are easily manipulated
But until we close below $5500 area on a weekly level, I'll remain bullish
Let's not forget that we just closed out the strongest monthly candle on the Bitcoin since 2017
— Josh Rager ? (@Josh_Rager) June 3, 2019
Although Bitcoin’s latest dip and its recent bout of instability certainly does appear to mark the end of the upwards momentum experienced in recent times, from a technical perspective it does seem as though there is likely to be further gains in the near future.
Featured image from Shutterstock.
