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Earlier this month, Bitcoin (BTC) plunged as low as $6,400, marking a new multi-month low for the leading cryptocurrency. But as fast as the crypto dropped, it reversed, with BTC surging to $7,700 just last weekend on the back of bulls looking to buy in the $6,000s.
Related Reading: Why Bitcoin Network’s Record 2019 Is Bullish For the Crypto Market
Although some say it is too early to tell whether or not a fully-fledged reversal has arrived, analysts are noting that the long-term Bitcoin charts are starting to favor bulls, despite the 50% decline seen over the past six months.
Bitcoin Bull Case Continues to Build
In a recent edition of the “Decentrader” newsletter, prominent cryptocurrency trader FilbFilb — who called the latest move to the $6,000s in October and the late-2018 crash to $3,000 months before it took place — remarked that he thinks the one-month Bitcoin chart is starting to shape up bullish.
Referencing the chart below, which is the one-month BTC price chart sourced from Bitfinex, FilbFilb noted that Bitcoin’s clean, no frills bounce off the low-$6,000s — a so-called Point of Control as marked by a long-term volume indicator — is rather bullish.
The mid-$6,000s, as his chart shows, is extremely important for Bitcoin on a macro basis, making the strong bounce off that level a positive sign for investors.
This isn’t the only reason why he’s bullish.
Per previous reports from NewsBTC, his analysis which called the latest move to the $6,000s published in October suggests that Bitcoin will now form an Adam & Eve-esque bottom in the $7,000s, prior to breaking to the upside, rallying to $10,000 (40% above current levels) by the time of the halving in May 2020.
This isn’t to mention that the Hash Ribbons, an indicator tracking the hash rate of the underlying Bitcoin network, recently printed a “buy” signal. This signal was last seen in the middle of January, months before BTC broke from $4,000 to $5,000, which created a domino effect pushing BTC to $14,000 by June, ending a 330% rally from the bottom.
Related Reading: China Continues Anti-Crypto Stance With Beijing Warning; Will it Work?
Still Some Bearish Uncertainty
All this is bullish, though a few analysts still have their concerns.
Analyst CryptoThies recently noted that his indicator, dubbed MarketGod, is still printing a “sell” signal on the December candle. He notes that MarketGod has called macro trends 4/4 in the past six years of Bitcoin price’s history, making the latest “sell” signal rather potent, for it implies that there are months more downside ahead.
Also, the one-month Moving Average Convergence Divergence (MACD) — a much-used trend following indicator used to determine directionality in markets — recently crossed bearish, with the blue (MACD) line crossing below the orange (signal) line.
This bearish crossover was last seen in June/July of 2018, preceding and predicting the abovementioned 50% decline seen at the end of last year.
Related Reading: Early Bitcoin Adopter Throws Cold Water On Halving Narrative; Here’s Why
Featured Image from Shutterstock
