These Indicators Have Flashed Bullish Signals for Cryptocurrencies
The performance of Bitcoin and the entire cryptocurrency market has been good within the previous few days. It was such that Bitcoin attained $7.2k level which is about hundred percent from the approximately $3.8k bottom established on March 13.
Despite the upsurge being minimal now, Bitcoin is trading at $6.8k and this is a little beneath the levels observed before the crash. This seems impressive because it was able to recover within 3 weeks and it is suggesting further upside.
Yesterday, Bloomberg released a report that noted Bitcoin’s push over a main technical barrier in recent times. This has allowed the DVAN Bullish and Bearish Pressure Gauge to show a favorable divergence and an upside signal.
In addition, a few days ago, Bloomberg said the GTI Vera Convergence Divergence Indicator is suggesting that the Bloomberg Galaxy Crypto Index revealed a bullish signal seen more than three months ago. The indicator measures up and down shifts while the index consists of 6 cryptocurrencies (BTC, ETH, LTC, BCH, XRP, and EOS).
Before the 50 percent price upsurge incurred by Bitcoin and several other cryptos between the middle of December 2019 and February 2020, the indicators flashed bullish signals.
Cryptocurrency traders consider both technicals and fundamentals. Currently, both are strong. In recent times, Qiao Wang of Messari posted a chart showing Coinbase Pro’s Bitcoin order book. The chart does not stand for what is happening on other exchanges but it is clearly showing that more traders are bidding Bitcoin instead of selling it.
Wang concluded that the data suggests a long-term bullish performance.
BTC order book… While I'm short-term cautious due to macro conditions, it can't get any more long-term bullish than this: pic.twitter.com/snq8ISFMCF
— Qiao Wang (@QWQiao) April 2, 2020
Another fundamental factor to consider is the imminent Bitcoin halving scheduled for May this year. It has been estimated that it will happen forty days from now. It is believed that the halving will have a good influence on the markets, with a reference to an analyst’s (known as PlanB) econometric model.
According to the model, 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 own scarcity level.