Bitcoin indicators signal upcoming rally
After consolidating around the $9,500 mark yesterday, BTC is showing a slight upward trend at the time of writing (+1.4% within the last 24 hours) and is trading at just under $9,630. The market capitalization of Bitcoin stands at 177.6 billion USD.
Furthermore, the pseudonymous analyst “Hornhairs” has pointed to another important technical indicator. Bitcoin has formed a “triple-top” formation, which puts the price in a bearish situation, but there is a diagonal, rising trend line that has held despite the flash crash, which could help to break this pattern. Should the formation be invalidated, which would happen with a breakout above $10,500, this could create a strong bullish momentum in the coming weeks and months.
Swept the weekend lows into the 1D bullish breaker and fib cluster.Holding above Monday's low and Monthly open.Daily market structure remains intact (bullish).HTF triple top liquidity resting above at $10.5k.
Beyond the spot market, however, there is also a bullish sign from the derivatives market. The 1-day chart on the Chicago Mercantile Exchange (CME) for Bitcoin Futures shows a “golden cross” emerging, which could push the 50-day moving average above the 200-day moving average. Since the Bitcoin Futures were listed on the CME in December 2017, the “golden cross” has formatted only once.
Author : Jake Simmons