Crypto Traders Using The ‘Directional Movement Index’ Technical Indicators Show A Bitcoin Bitcoin Bull Run In The Making
Technical Indicators Show That A Bitcoin Bull Run Might Be On The Horizon
Short-term technicals have outlined a confident portrait for BTC. Per reports from Bloomberg’s Reade Pickert, after BTC surged past $4,000 for the first time since Christmas Eve/Christmas, technicals have begun to turn positive for the asset.
The Directional Movement Index, which tracks market trends, has crossed into a positive zone for the first time since mid-November, “ending Bitcoin’s ‘very strong’ selling streak.” Pickert claimed that the asset could be entering a new “positive buying phase,” which could catalyze a run-off rally in the near future.
Mati Greenspan of eToro said:
“In technical analysis, this makes these levels very strong… But I think only once we see a strong break above 5,000, 6,000, if we get above 7,500, that’s when people start to turn really bullish.”
The GTI Vera Convergence Divergence indicator is suggesting BTC has entered its “longest buying streak in six months,” presumably due to the fact that the cryptocurrency hasn’t dropped drastically over recent weeks. The indicator predicts that if buy-side pressure continues for the next two weeks, Bitcoin could continue to move higher, continuing a bounce off its year-to-date lows at ~$3,150.
So, What Does This Mean For Crypto Markets?
Bitcoin has historically carried the entire market trend of Altcoins. Recently, Ethereum is being able to hold its own due to the upcoming Constantinople fork. Popular crypto influencer and analyst The Crypto Dog says:
“I’m not sure either way of course, but I find it really hard to be particularly bullish on $ETH / $USD with the $ETH / $BTC ratio pair looking like this… Maybe just a small pull-back was due, but as of now ETH doesn’t look particularly compelling to me here.”
The BCH hard fork was not only bad for the coin but also the entire crypto ecosystem. Now, we have to wait another week to see how the ETH fork influences the community.