Bitcoin, Cryptocurrency And Blockchain News

Bitcoin (BTC) Price Predicted to Ride Higher on These 5 Bullish Indicators

Technical indicators paint a bullish picture for Bitcoin. Here to stay?


The Bitcoin (BTC) Bulls Are Back. Here to Stay?

After sliding through most part of May-June 2018, the Bitcoin bulls appear to be back. Bitcoin’s price has been making an upward trajectory since the 15th of this month, with all key technical indicators siding with the bulls. Barry Silbert, the founder and CEO of Digital Currency Group, has recently put more money into Bitcoin (BTC), believing that it has hit the bottom for the year. Marc Lasry sees Bitcoin at $40,000. Mike Novogratz has previously made predictions of $100,000 and over, while John McAfee famously claimed that Bitcoin would hit $1 million by 2020. And why not? The regulatory environment for cryptocurrency has also become friendlier than before!

So, while the fundamentals paint a positive picture for Bitcoin (BTC), technical indicators too are raising expectations of an upward trending Bitcoin (BTC) price line now onward. We were able to identify 5 key technical indicators that are currently indicating a bullish trend for Bitcoin (BTC).

Bitcoin Price Analysis Reveals 5 Bullish Indicators

  1. Broke recent downtrend on June 30, 2018

On June 30th, BTC price broke its 2-month long downtrend to reverse its course. The crypto has been largely following an upward trajectory since then, staying well above and distant from its medium-term trend line (downward sloping dark green line above).

  1. Strong upward bullish movement in price since July 14th, 2018

Notice the broad trend in BTC price in the chart below. Since July 14th, BTC has been steadily treading upwards to make good existing investor loses and establish hope for new investors.

  1. Inverse head & shoulders pattern formed

An inverse head and shoulders (aka head and shoulders bottom) is used in technical analysis to predict the reversal of a current downtrend. This pattern is identified when:

  • The price falls to a trough and then rises (shoulder, 1 in chart above);
  • The price falls below the former trough and then rises again (head, 2 in chart above); finally,
  • The price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs (shoulder, 3 in chart above).
  1. Moving averages indicate a bullish crossover in the making

The 14-DMA (day moving average) and the 50-DMA are clearly heading towards a bullish crossover. The shorter-term moving average line crossing the longer-term moving average line from below indicates bullishness in the current market sentiment. In the chart for Bitcoin price above, the orange color 14DMA is steadily towards making a bullish crossover with the purple color 50DMA.

  1. Momentum indicators indicate bullishness too

Momentum indicators leave no stones unturned. Having laid down that the current trend for Bitcoin (BTC) price is bullish, one should also check for the sustainability of that movement. Here’s where momentum indicators such as RSI (relative strength index) and the MACD (moving average convergence/divergence) come to rescue. Currently, for Bitcoin, the RSI reads at over 65 index level, far above the neutral 50, indicating good strength in market momentum. Moreover, the MACD line has also been directionally trending upward since mid-June.

We anticipate a good run from here for Bitcoin (BTC) price based on key technical indicators. However, considering the heightened volatility that the market for cryptocurrency is exposed to, one cannot confirm the trend or price range for the expected surge. Having said that, one must remember that Bitcoin (BTC) price is now recovering from one of its lowest points. So, assuming there are no bearish surprises in store, we should see Bitcoin (BTC) only trending upward from here.