Indicator Gives First Bullish Signal Since Bitcoin Price Bottom

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin price may have fallen over the last two days, but the overall trend over the year thus far has been up, and an end to the correction could soon be here.

One crypto analyst has spotted an extremely bullish signal on a Bitcoin price indicator that hasn’t given such a signal since the first-ever crypto asset bottomed out in the low $3,000 range.

OBV Indicator Shows Bullish Divergence, Bitcoin Price Could Spike As a Result

Bitcoin price is amidst a longer and deeper than most crypto investors expected, after witnessing just how fast the crypto asset rose to $20,000 in 2017 and during this recent parabolic rally from the $3,000 range where Bitcoin set its bear market bottom.

The correction first began in late June and is now over two months long in duration. During that time, Bitcoin price has fallen over 30% from $13,800 where it was rejected by the resistance level where the bear market all began.

But that level may soon be broken, as one crypto analyst has discovered a powerfully bullish signal on a USD/BTC chart indicator that hasn’t occurred since Bitcoin rocketed out from the deepest depths of the bear market – never looking back.

Im Long $btc.

First OBV bull div on the 4hour since $3350.

Live by the sword, die by the sword. pic.twitter.com/6V4nHLDvXh

— filbfilb (@filbfilb) August 30, 2019

Crypto analyst filbfilb, an analyst who nailed various calls throughout Bitcoin’s parabolic rally, says that the OBV indicator is showing the first bullish divergence since the first-ever crypto asset was at its bottom. The last time this signal was seen, Bitcoin price saw over 300% growth from there in a matter of six months.

OBV stands for on-balance volume and according to Investopedia is a “technical trading momentum indicator that uses volume” to predict changes in the price of an asset – in this case, Bitcoin. A bullish divergence occurs when prices reach a new low, while the indicator fails to do so and sets a higher low.

Crypto analysts and traders use these tools to help them predict where the market direction is going. The bullish divergence on the OBV indicator can be seen on the 4-hour chart. Signals on higher timeframes provide the most weight in any technical analysis.

Another 300% rise from $10,000 would take Bitcoin to double its previous all-time high at $20,000, and set a new all-time high at $40,000. The last time Bitcoin price grew by 300%, it only took six or so months. The leading crypto by market cap at $40,000 six months from now would follow along with the predicted trajectory of Plan B’s stock-to-flow model, which suggests that Bitcoin price will reach $55,000 by May 2020, when Bitcoin’s halving occurs.

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.