After falling below $ 18,000, bitcoin managed to climb back up and hold above $ 21,000 in the past week. After this more or less satisfactory rebound, the cryptocurrency has once again shown signs of concern since the end of the weekend. However, some indicators suggest that bitcoin may soon experience another relief rally.
Reversal of trend after peak of liquidation
Better known as the DeMark, TD Sequential Technical Indicator helps determine if an upward trend in the market (bearish or bullish) peaks. It is determined by a counting technique applied to the price charts. According to the DeMark indicator, bitcoin has already registered a maximum of 13 countdowns. This suggests that Bitcoin’s peak sales have already happened and a trend reversal is imminent. Another indicator, namely the linear regression channel, also suggests that bitcoin peak sales have peaked in this mark market.
It is obtained by finding unexpected statistical deviations from a line that comes closest to the sequence of bitcoin price changes. With three standard deviations below a rising regression line that started at the lows in December 2018, bitcoins may have seen a recent sell-off. The last indicator corroborating this analysis is the relative strength index which is close to its lowest level since 2010. bitcoin in an increased zone is oversold and should rallythe same case occurred in 2018.
Coinbase Premium Gap confirms end of bitcoin selling pressure
The movements made by US investors over the past few days confirm that the selling pressure on bitcoin is coming to an end. In fact, Coinbase Gap Premium, which measures the difference between BTC prices on Binance and the US exchange, is gradually approaching zero. This indicates that investors on Coinbase are accumulating more bitcoin than they are selling it, which could lead to higher prices for the asset.
Despite these promising signs for the bulls, bitcoin is still trading around $ 21,000 at the time of writing this report. Only the ability of the cryptocurrency to seek higher resistance levels could validate the beginning of the trend reversal announced by the various indicators.
Source: U.Today
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