Bitcoin Sees Bull Market Sign
Despite the fact that Bitcoin (BTC) has just slipped under $10,000 for the umpteenth time in a matter of a few weeks, the cryptocurrency recently saw yet another bullish indicator come to fruition, one that preceded multi-month, parabolic bull markets that saw BTC gain hundreds of percent.
As AwyeeBitcoin, a popular Bitcoin personality on Twitter points out, this indicator is the U.S. Dollar value of the coins sent in one day passing above the peak of the previous bubble. Just recently, like literally the other day, this occurred, with the value of the Bitcoin sent through the blockchain surmounting some $60 billion.
That’s not the only sign that a jaw-dropping bull run is right on the horizon. 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.
Also, 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.
Not All Sunshine and Rainbows
It is important to point out that these indicators don’t imply Bitcoin will rally higher consistently with no pullbacks. They only hint that the cryptocurrency market is poised for long-term growth, meaning that the recent drawdown from $14,000 wasn’t the peak of this cycle.
You see, in the short-term, a number of analysts are expecting for BTC to scale back further, as the rally to $14,000 has been deemed by many to be too far, too quick — unsustainable, in other words.
Per previous reports from Ethereum World News, Bitcoin’s one-day chart isn’t looking all too good per the Ichimoku Cloud. Hodl21k wrote that the Heikin Ashi candle trend is weakening, as marked by small candles after large downtrend candles. Other Ichikmoku Cloud indicators implying bearish price action includes the Chikou line being now below the price, the Tenkan and Kijun lines pointing lower, and the price entering the Kumo band. Per a later tweet from the trader, the move that follows could bring BTC into the $7,000 range.
Also, cryptocurrency investor Timothy Peterson has observed a decline in the Bitcoin blockchain’s fundamentals as the price has dropped, potentially implying that BTC to drop off further. Peterson previously noted that per his model that relates the number of active addresses to Bitcoin’s price, $8,000 would be a “fair” valuation for the cryptocurrency. The price, of course, can deviate from that model, but it gives a fair estimate as to where BTC could be headed next.
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