Late last month, Bitcoin (BTC) saw an amazing trading session, with the cryptocurrency price earning 42% within a 24-hour period; This has been the best daily performance of BTC in over six years. This move, which brought the property from $ 7,300 to $ 10,500, shocked many, and many saw the increase as something that was completely insensitive.
Related reading: Bitcoin’s commitment to Twitter falls for a minimum of two years as sentiment turns into a bear
However, the retrospective analysis showed that $ 7,300 was the 200-day moving average price in the CME futures market at that time, making 42% of the rebound the most bizarre.
While there is no guarantee that a rebound will come again, Bitcoin knocks on the door of the 200-day average in the CME table. What do you expect analysts to do this time?
The key level of Bitcoin taps; What next?
For those who do not know, technical analysts believe that the 200-day moving average of any asset is a level indicative of macro trends; Above-level trade implies a bullish macro trend, below-level trade implies a bear’s macro trend. As read in this section from Investopedia entry:
The simple 200-day moving average (SMA) is considered a key indicator by traders and market analysts to determine the overall long-term market trend … As long as the stock price remains above the SMA 200 in a daily timeframe, usually the operation is considered a general trend .
As noted by Mexbt analyst and as mentioned, Bitcoin has taken the 200-day moving average on CME. This time, this price did not respond, as the BTC was reduced slightly above $ 8,000.
Bitcoin is re-examining its 200-day CME 👀
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12:23 – November 20, 2019
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Although 42% recovery from the 200-day moving average is not very likely, there are signs that bulls may be ready to take over the crypto market again.
According to previous NewsBTC reports, Continuous Indicator Tom Demark, who uses time and prices to determine trends and investment points, has just printed two “Buy Nine” candles on the Grayscale CME and Bitcoin Trust. Also, just today, the BTC Spot Graphics just printed a nine-purchase.
This is far from the end of the bull story. Co-operator Jedox recently noted that the Bitcoin price action from the $ 3,150 long-term fund set up in December 2018 so far looks a lot like a textbook template by Richard Wickoff, marked by a sharp rise. Upwards after a bear market, double standard ceiling, backwards build up and then a bullish bull after bull break.
Jedox suggested that if his interpretation of this Wickoff pattern was correct, Bitcoin found a $ 7,400 mid-term fund and would soon see a sharp upside break.
The surrender occurred
Of course, the above is fine, though a key bear signal just appeared. The signal in question, the fire ribbons cross the bassist. As explained in this media in a recent report, this signal implies that miners are switching titles, selling their coins to turn on the lights, withdraw cash or upgrade their systems for the future.
The fire movies actually invested days before Bitcoin began a 50% decline from $ 6,000 to $ 3,000. In addition, this signal was seen several days before a 30% decline in 2016.
Related reading: Bitcoin visits a critical long-term trend line; The next burglary could lead to big losses