Bulls Regain Control Over Bitcoin Trend Strength: What To Expect

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin bulls are back in charge, so to speak. The headline alone makes quite a statement, and there are no doubt several readers questioning how one might draw such conclusion after only a small move and lack of new highs.

The conclusion has been made for us all, depending on what the Average Directional Index is currently saying about an asset – in this case the top cryptocurrency by market cap. Let’s take a look what the trend strength measuring indicator says about Bitcoin price action.

Tug-Of-War Ends With Bears Falling Flat

Last week, after several weeks of chop and stalemate, Bitcoin broke out from short-term downtrend resistance, and is close to making it though high timeframe resistance as well.

The shots fired from bulls might have actually been the starting pistol ahead of the final leg of the bull run, according to the Average Directional Index.

In technical analysis, a reading on an indicator either is or it isn’t – meaning, for example, the MACD can only be crossed bullish or bearish, not both at the same time. The Average Directional Indicator is a trend strength measuring tool that typically comes with two built-in directional indicators – a positive and a negative.

The ADX itself, simply says how strong the trend is, and the positive and negative DI tell who is in control. They make reading the tool very straightforward: green crossed above red is bullish, and red above green is bearish. From that description alone, who is currently winning the battle of Bitcoin, as pictured below?

Bulls just took over the daily trend | Source: BTCUSD on TradingView.com

Bitcoin Price Remains Bullish On High Timeframes

The green line only just took over from bears, so bulls only recently regained the upper-hand on the lowest timeframes. Bearish traders were expecting different results, because the weekly setting using this indicator is currently negatively crossed.

What was able to leave bears blindsided, however, was the fact that the highest timeframes still show plenty of strength left for bulls. Any recent downtrend was an attempt to feign weakness by bulls, according to the indicator’s readings.

The ADX shows plenty of bull trend left | Source: BTCUSD on TradingView.com

The ADX itself, depicted in the dark blue line, hasn’t yet begun to turn downward. When it does, it could be a sign that the bull trend is finally ending.

After the peak in 2017, Bitcoin never truly broke bearish when compared to the 2014 bear market. When bears finally do regain control over Bitcoin price, the worst bear market ever could follow.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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