Bitcoin Indicator That Precedes Major Bull Runs Flashes Again
Bitcoin Indicator That Precedes Important Bull Runs Flashes Again
“After the price plunge, there have been subsequent exchange inflows by whales for 2 reasons. 1/ In the bull market: To sell it in the local high. They sell when the retail investors are active on exchanges. 2/ In the bear market: To sell it if the odd fear-sell occurs,” explained Ki-Young Ju, the CEO of CryptoQuant.
In retrospect, an Ascending Triangle in an uptrend is a bullish continuation pattern. The purchase price rises while staying above the up slope of the Triangle. Meanwhile, it tests the Triangle base as resistance for a possible breakout move to the upside. If it occurs, the price rises by as much as the maximum length of the Triangle.
Bitcoin Inflow and price correlation. Source: CryptoQuant
At the same time, Pfizer’s successful coronavirus vaccine trial expects to reduce investors’ desire for safe-haven assets. That also poses risks for Bitcoin since it trades near its three-year high — an appealing selling area.
Bitcoin trade setup, as exemplified by PostXBT.
Meanwhile, dealer Koroush AK reminded:
In actuality, we would need to go below $14,000 for my prejudice to shift. So long as the trend stays intact, I will be favoring longs and harshly longing dips.”
Analysts from on-chain fundamentals predicted a similar bullish outcome for Bitcoin but based on technical indicators. A pseudonymous daytrader noted the cryptocurrency rising upward within a range that seemed like an Ascending Triangle.
Released at Tue, 10 Nov 2020 09:18:48 +0000
Exhaustion in Bitcoin inflows means that traders are switching their selling sentiment to”HODL.” They maintain lesser and lesser cryptocurrency units in their exchanges’ pockets which leads to lesser liquidations. The CryptoQuant chart below illustrates the relationship between the Bitcoin price and MA7.
‘The newest MA7 readings demonstrate that Bitcoin is still in a strong buy zone,’ he added.
When the metric shirts out, Bitcoin signals a rebound to the upside, at least based on the index’s creator CryptoQuant, a data aggregation platform.
“Dismissing it and focusing on [the] resistance in the highs. Redline marks where a break in market structure would appear. Bullish whilst we’re above.”
Bitcoin Technical Outlook
The latest instances demonstrate that Bitcoin trends upward on signs of a pullback from the MA7 indicator. Most recently, the cryptocurrency rallied by more than 200 percent after MA7 topped out in March 2020. The results were similar in late 2019 and late 2018.
A vast majority of downside risks Bitcoin face now lies outside the technical purview.