Despite the strong defence that the bulls have been putting up for BItcoin over the past few weeks, the leading cryptocurrency couldn’t hang on any longer as the price fell below $4,000 to its current price of $3,820.
Even though the news isn’t great for investors in Bitcoin (suppose you’re all used to it by now anyway) one widely used technical indicator is suggesting that the leading crypto could be reaching a point of inflection which could lead it to a huge movement in price.
The build-up to movement
According to NewsBTC, a newly published report details that the leading cryptocurrency is close to making a big movement in price based on the widely used GTI VERA Bands Indicator, this uses trend data over any time frame to give investors insight into which direction an asset is getting ready to jump towards. This suggests that Bitcoin is currently in its longest buying trend since September.
“This indicator is now seeing a drastic narrowing of its upper and lower bands, which typically precedes a large price swing. This, coupled with the recent buying trend that Bitcoin has been in, may signal that it will see a significant increase in buying volume in the near future.”
Directional Movement Index is another widely used indicator which also recently flashed a buy signal for the leading cryptocurrency. This has been primarily based on the strength and momentum of buying and selling trends. “The DMI separates price movements into either a positive or negative directional movement category, which is used by traders to quantify the strength of a particular trend.” Earlier in the week, for the first time in months, the DMI flipped positive for Bitcoin “very strong” selling pressure had been mainly subsided with the buying volume is gradually increasing.
At the moment there isn’t a way to know as to whether these suggestions are right in assuming that Bitcoin’s price will eventually rise with analysts having mixed opinions in regards to the data.
A senior market analyst at eToro, Mati Greenspan spoke to Bloomberg regarding the DMI flip and said that in order for a truly bullish case to be made for Bitcoin, “in technical analysis this makes these levels very strong. But I think only once we see a strong break above 5,000, 6,000, if we get above 7,500, that’s when people start to turn really bullish.”
What are your thoughts? Let us know what you think down below in the comments!