Indicators Reveal that Bitcoin and Other Cryptos may Uptrend
In the previous few days, Bitcoin and the entire cryptocurrency market performed well. Bitcoin attained a level of $7.2k, which is about a hundred percent from the approximately $3.8k bottom, established on the 13th of March. Even though there is a minimal upsurge, Bitcoin is trading at $6.8k, just below the levels observed before a crash. It seems impressive since it recovered in three weeks, and there is still a potential uptrend.
In recent times, Bitcoin’s push over a main technical barrier allowed the DVAN Bullish and Bearish Pressure Gauge to show a clear divergence and an upside signal. Additionally, the GTI Vera Convergence Divergence Indicator suggests that the Bloomberg Galaxy Crypto Index revealed a bullish signal seen more than three months ago.
The indicator measures up and down movements while the index consists of six cryptocurrencies: Bitcoin, ETH, LTC, BCH, XRP, and EOS. Before the 50% price rise by Bitcoin and several other cryptos between the middle of December 2019 and February 2020, the indicators flashed bullish signals.
Technicals and Fundamentals Factors Showing Bitcoin May Surge
Cryptocurrency traders are considering both technicals and fundamentals, and these factors are currently substantial. Recently, Qiao Wang of Messari posted a chart showing Coinbase Pro’s Bitcoin order book. The chart does not show what is happening on other exchanges. However, it is clearly showing that more traders are bidding on Bitcoin rather than selling it. Wang concluded that the data suggest a long-term bullish performance.
Another fundamental factor to consider is imminent Bitcoin halving, scheduled for May this year. The halving will happen forty days from now on an estimate. There is a belief that the halving will positively influence the markets, referring to an analyst’s econometric model, also known as PlanB. The econometric model suggests that Bitcoin’s fair value will surge higher by more than 1000 percent, following the halving event, as the analyst discovered that the value of Bitcoin is derivative of its scarcity level.