HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Readies to Surge as Sellers Get Hit with Technical Triple Whammy

Bitcoin 2020/04/25 12:00 by Nick Chong
Just weeks ago, Bitcoin’s long-term outlook was anything but bullish. As the macroeconomy started to feel the effects of the coronavirus outbreak, global markets crashed in tandem, leaving no asset classes spared, crypto included. This culminated in the middle of March in a massive liquidation event that saw stocks, commodities, foreign currencies, Bitcoin, and even gold plunge. In this move, BTC sliced through key support levels as if it was a hot knife through butter, billions were liquidated on margin exchanges, and investors began to call it quits on crypto. Related Reading: Crypto Tidbits: Bitcoin Surges to $7,800, More U.S. Stimulus, Tether Erupts But, the technical and fundamental outlook for Bitcoin has rapidly improved, so much so that the aforementioned crash has been entirely reversed. Bitcoin Bears Slammed By Massive Divergence According to a pseudonymous crypto trader, while Bitcoin’s long-term chart shows a stark reversal from 2019’s highs at $14,000, the downtrend has actually formed three positive signs: three bullish divergences. Bullish divergences form when oscillating technical indicators trend higher as an asset moves lower, most often suggesting latent demand, which is followed by an eventual breakout. The divergences the trader pointed to were notable as he found a total of three on a weekly time frame: Bitcoin has trended lower as the Money Flow Index, the MACD, and the Fisher Transform indicators have pushed higher. The fact that these divergences were found on a weekly chart corroborates the sentiment that BTC is poised to scale back into a longer-term bull trend. It’s Far From the Only Bullish Sign The fundamentals present an equally-as-bullish outlook for Bitcoin. Since the start of the ongoing coronavirus crisis, central banks have gone into overdrive to try and prevent the collapse of the economy. The Federal Reserve, in particular, has been extremely heavy-handed as Arcane Research shared in a recent report: “The Federal Reserve’s balance sheet is climbing to new highs this week, now surpassing $6.5 trillion… [it] expanded by another $205.2 billion in the past week, to $6.57 trillion. It has ballooned by $2.4 trillion, or 58%, since the end of February,” they noted. It’s a trend that the crypto research firm says should be a massive boon for Bitcoin, which is about to see its block reward halving event as central bank balance sheets have started to take on more assets. Arcane suggested that the eerie timing of these two trends could present a massive bull case: “While [the] FED is printing money, Bitcoin has different plans with an upcoming halving in just three weeks. This will cut the yearly production in half, from 12.5 to 6.25 coins per block. This quantitative hardening may attract new investors to bitcoin, as ‘the money printer’ keeps running at full speed.” Photo by Everaldo Coelho on Unsplash

1 Like(s)



You should also read...

Bitcoin 05/06/20 02:00 by Nick Chong
Bitcoin Rallied 300% Last Time This Signal Appeared. It Just Happened Again
After rallying as high as $10,400 earlier this week, Bitcoin plunged by nearly $2,000 in 24 hours on BitMEX. It was a move that liquidated over one hundred million worth of derivatives positions. Anal...
Read More
Mining 14/09/20 05:00 by Nick Chong
Bitcoin’s Hash Rate Surges Higher Despite $2,000 Price Correction
Bitcoin has faced a strong correction over the past few weeks as legacy markets have collapsed from local highs. The leading cryptocurrency currently trades at $10,250, over $2,000 below the year-to-d...
Read More
Bitcoin 15/09/20 04:00 by Cole Petersen
Bitcoin Address Activity Points to Ongoing Trend Reversal
Bitcoin’s fundamental strength has been growing in recent weeks, which is starting to be reflected in its price action. After an extended bout of technical weakness as BTC traded within the lower-$1...
Read More
Bitcoin 01/10/20 04:00 by Cole Petersen
Bitcoin “Hodlers” Control 63% of the Total BTC Supply, New Data Shows
Bitcoin’s price action has done little to reassure investors of its near-term outlook, as the cryptocurrency has largely been caught within the throes of an intense bout of sideways trading over the...
Read More
Bitcoin 04/11/20 11:00 by Nick Chong
Analyst Who Predicted Bitcoin Rally to $14,000 Says $14,500 Is Next
Bitcoin has undergone a strong rally since Monday’s lows of $13,200. The leading cryptocurrency currently trades for $13,900, up 3.2% in the past 24 hours. Bitcoin is trading slightly below its ...
Read More