Sucker’s Rally or Bitcoin Bull Run?
Earlier this week, legendary gold investor Peter Schiff claimed Bitcoin (BTC) has been experiencing a “sucker’s rally”. In an impassioned tweet, the hard money advocate — who has, for some reason, taken a disliking towards supply-capped and decentralized cryptocurrencies — postulated that due to the fact that the “bubble has already burst” for Bitcoin, this upswing is unlikely to continue.
Others have also made similar suggestions, asking if BTC’s recent move past $10,000 was “one final pump” before the “Ponzi scheme” collapses. You see, cynics have claimed that this move higher is entirely manipulated, specifically citing the correlation between the growth in Tether’s (USDT) market capitalization and BTC.
But, according to a number of technical signals that accurately confirmed previous bull runs, this rally is just getting started. As pointed out by analyst CL207, a little-known yet astute cryptocurrency commentator, BTC recently crossed above the 1.25 standard deviations above the 50-week simple moving average line.
This, per the historical chart seen below, has accurately predicted two previous parabolic bull runs and subsequent bearish sell-offs. So, if history is of any indication, Bitcoin’s foray past $10,000 may just be the early stages of a larger uptrend, which some analysts say will bring BTC to $100,000 and beyond in the coming two years.
CL’s analysis isn’t the only thing seemingly confirmed a longer-term uptrend.
As spotted by Filb Filb, a prominent cryptocurrency analyst who believes BTC reaching $100,000 and beyond is possible, the Moving Average Convergence Divergence (MACD) on Bitcoin’s one-month chart is about to experience an extremely bullish crossover. More specifically, the indicator, meant to observe overarching trends, is about to see its third monthly cross from red to green in Bitcoin’s history.
The last time that this was seen was when BTC embarked on its bull run from the low triple digits ($300) to $20,000.
But wait, there’s more. Just last week, Bitcoin experienced a massive “bullish engulfing candle”, which traders like Josh Rager and Nunya Bizniz, suggest is a pattern that “led to continuing uptrend last bull cycle.” Even more convincing is the fact that the Super Guppy, an all-encompassing technical indicator that predicts trends, has flipped from red to green on Bitcoin’s three-day and one-week charts.
Once this occurred during the last bull run, BTC rallied for over 15 months straight, shooting past new highs seemingly month in, month out. Whether or not the same happens this time around remains to be seen. Regardless, many analysts have begun to prepare for the next fully-fledged bull run.
Photo by Yasemin K. on Unsplash