A historical Bitcoin price indicator has recently turned green and is now pointing towards a possible breakout in the price index. The indicator turned green even through the current mood is quite bearish overall with the index now more than 32% lower than its all time high of $69k set just last month. Currently at $48k, Bitcoin is still not seeing any light at the end of the tunnel but a flurry of green trading signals might help the bulls in revitalizing the bull run.
According to widely followed crypto analyst Matthew Hayland on Twitter, an price signal called Momentum Indicator had turned bullish. Momentum indicator as the name suggests is a measure of where the crypto is going to go in the near future.
According to Hyland:
#Bitcoin has broken out of the multi-month down trend on the Momentum Indicator (One Day Time Frame)!!!
The previous two times it broke out of a multi-month downtrend this year, a massive bullish move followed: pic.twitter.com/DXijBZSPcV
— Matthew Hyland (@Parabolic_Matt) December 16, 2021
The momentum indicator join a list of many other on-chain and graphical indicators that predict that Bitcoin will breakout in the near future. We have covered many of them in detail in previous articles.
The momentum indicator gave way for bullish moves back in August and then later on in October earlier this year. In both of these instances, the indicator flashed green. Now, it is once again in green territory and begging the bulls to cash in on the opportunity and breakout above $50k at least.
However, the bulls are very uneasy at the moment and they will need some credible big-time buying activity to make a move above. Despite the Relative Strength Index (RSI) at record lows and amount of BTC consolidated in long-term wallets also at highest levels ever, the cryptocurrency is still failing to recovery strongly. The move below $50k in particular has ruffled some feathers on the bulls and they are looking both sides while crossing the street. The bears on the other hand are pulling the index down hard at every opportunity, but they too have apparently hit a concrete wall at around $46k at the moment and can’t seem to go below it.
So, the ultimate bullish indicator is the price and if it can’t move above $50k convincingly, no analytics can make it do so.
Image Source: pixabay.com
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