Bitcoin has been weak in recent days, falling to $ 8,950 and hitting $ 9,800 on Monday. Nevertheless, there are technical signals that indicate that an upward trend is soon emerging.
A signal that was last seen at the start of the crypto rally in March is about to reappear. And that’s good for the bull case.
Despite flash crash fears, Bitcoin flashes a few bullish signs
The Stochastic Index of Relative Strength (Stoch RSI) has long been a leading signal in technical analysis. As Investopedia explains, the Stoch RSI “gives traders an idea of whether the current RSI value is overbought or oversold”.
The indicator has been pretty accurate in predicting Bitcoin’s price performance in recent years. The week-long Stoch RSI turned striking just a week or two after the high of $ 14,000 in 2019, predicting the 60% crash that followed.
The same indicator also showed a bullish trend in December, leading the ~ 40% rebound to $ 10,500. An analyst has since observed that the Stoch RSI is bullish on the 12-hour, one-day, two-day and three-day charts:
#Bitcoin Stoch RSI Alert!
12h, 1D, 2D and 3D are over-sold and look like they want to reverse while monthly also is turning bullish!
Only weekly is over-bought but not pinned to the top yet. pic.twitter.com/SiF6wAqDOV
— jb (@blackswan0815) June 27, 2020
The three-day Stoch RSI is particularly important since it last crossed upwards days after the crash in March. Not to mention that another cross will take place shortly. In addition to the upward trend, the same analyst also shared the graph below.
Try again!
You can do it #Bitcoin pic.twitter.com/7wPQY4aQWD— jb (@blackswan0815) June 27, 2020
It shows that Bitcoin may be a Wyckoff re-accumulation rather than a Wyckoff distribution. If BTC shows Wyckoff re-accumulation, it means the cryptocurrency is about to start another upward trend. Given the extent of consolidation in recent weeks, BTC is likely to move to $ 12,000.
Not the only cop
The analyst who shared the charts above is in good company. There is a confluence of other companies and analysts who are bullish on the leading cryptocurrency.
Bloomberg’s senior commodity analyst Mike McGlone recently published a report on Bitcoin. In this report, the analyst said that “something must go wrong” so that the leading cryptocurrency does not appreciate. He referred to the perfect storm of macroeconomic, technical and on-chain trends that signal increasing acceptance and higher prices.
McGlone doubled his optimism in a recent tweet that was released on June 26th. In it, he said BTC was almost like a “caged bull” aiming to break out at $ 13,000 in the coming weeks.
Proof of text: newsbtc
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