Bitcoin (BTC) Likely On the Verge Of Parabolic Rally, Analyst Notes
Bitcoin Indicators Point Towards Start Of Bull Run
While some have been skeptical of this rally, claiming that Bitcoin (BTC) isn’t ready to rally, a few indicators show that the recent move to $8,000 is about to kick off a parabolic run.
Popular analyst Nebraskan Gooner recently noted that his proprietary “Top Goon X” indicator, which has historically flashed “buy”/”parabolic” to precede massive moves to the upside, has just issued a signal after over three years of inactivity. As seen below, the last four times a “parabolic” signal was issued on the daily chart, massive exponential moves graced Bitcoin in the coming months and years. If history is of any indication, this could be the latest sign that “crypto winter” is finally over, and we’re about to be flung into spring, then summer.
This isn’t the only bullish sign though. In another tweet, Nebraskan suggested that Bitcoin’s current daily chart structure is looking much like it did during BTC’s 2013 rally. The investor, who founded exchange upstart Level, drew attention to a chart that showed that the current candle formation is what was seen prior to BTC rallying from $200 to $1,200 in 2013. The fact that BTC has continued to fulfill 2013’s trend, by printing a relatively flat candle today, adds to Nebraskan’s theories that a huge rally may just be inbound.
Aside from technicals and historical trends, there are other clears signs that new all-time highs for the leading cryptocurrency are just a matter of time. As Ethereum World News reported previously, Thomas Lee of Fundstrat Global Advisors claims that there are upwards of 13 reasons why “crypto winter” is over. These include the Bitcoin Misery Index reaching 89, a trend only seen in bull markets; Bitcoin bulls coming out of the woodwork after hiatuses; surging over-the-counter volumes; and a growth in the number of daily on-chain transactions, signifying underlying interest in BTC as a technology, not just as an investment.
Really? Maybe Not Yet
Maybe the rally isn’t on yet. As Bravado’s lead analyst, Bitcoin Jack, recently drew attention to, BTC remains under a key resistance of $8,400, which has proven to be a formidable level over the past two weeks. As seen below, BTC is currently being pressured by that level, which could result in a rapid tumble if the $8,400 resistance isn’t purged in good time. In a later tweet, Jack suggested that if $8,400 holds, a move to $5,000 could occur, whereas Bitcoin and the rest of the cryptocurrency market would enter a second phase of accumulation before another fully-fledged bull run.
He isn’t the only one to have been slightly skeptical of this move. Magic Poop Cannon, an ill-titled technical analyst that called last year’s BTC decline from $6,000 to $3,000, recently remarked that there’s a likelihood that the bull market isn’t on yet. Per previous reports, the trader explained that there are clear signs that Bitcoin is overextended: the Money Flow Index and Network Value to Transactions ratio have both neared the top of their oscillators, which is a pattern that has historically preceded drops of over 80%.
As normal, it seems that analysts are divided about the immediate future of the cryptocurrency market. Most, however, are sure that in the long-term, BTC will just do fine.
Title Image Courtesy of Daniel Pascoa Via Unsplash