A lesser-tracked technical analysis indicator is signaling good times ahead for bitcoin.
- The cryptocurrency’s 10-week simple moving average (SMA) is about to dip below the 50-week SMA, confirming a so-called bearish crossover.
- Historically, the negative signal has proven to be a contrary indicator, marking interim price bottoms and the end of bear markets, as feature image shows.
- The previous bearish cross dated mid-March 2020 occurred after bitcoin’s coronavirus-induced crash to $4,000. Bitcoin picked up in the subsequent months, setting record highs above $20,000 by December.
- Similarly, bitcoin bottomed out and rebounded at least 25% following the confirmation of the negative crossovers in early January 2020 and mid-June 2018.
- Moving averages are based on backward-looking data. Thus, on weekly and monthly charts, bearish and bullish crossovers can be taken to represent oversold or overbought conditions and the potential for price bounce and bull market corrections.
- That said, technical studies are unreliable as standalone indicators and seasoned traders prefer to read chart-based signals with money flow and fundamentals, which are currently signaling a low probability of a significant price bounce.
- Bitcoin suffered a deeper drop following the confirmation of the first bear cross between 10- and 50-week MAs seen in September 2014.
The post Technical Indicator Points to Bitcoin Price Bounce appeared first on Bitcoin News Miner.
Source: https://www.bitcoinnewsminer.com/technical-indicator-points-to-bitcoin-price-bounce/
More from BitcoinNewsMiner
Meet VenomDAO: The DeFi Protocol Building Liquidity For A Multi-Chain World
Source Node: 1176247
Time Stamp: Feb 16, 2022
First Mover Americas: Biden Issues Crypto Order; Inflation Expectations Hit Record High
Source Node: 1206983
Time Stamp: Mar 9, 2022
Study: Switzerland Has ‘the Most Profitable Bitcoin Traders’ Worldwide, While France ‘Is the Best Bitcoin Trading Nation’
Source Node: 1272716
Time Stamp: Apr 20, 2022
Softbank Invests $200 Million in Brazilian Crypto Trading Platform Mercado Bitcoin
Source Node: 956824
Time Stamp: Jul 1, 2021
Figuring Out How Much Bitcoin Hashrate Resides in Mainland China Still a Mystery
Source Node: 931668
Time Stamp: Jun 19, 2021
Visa to Approve Cryptocurrency Card by Australian Startup
Source Node: 1858172
Time Stamp: Jul 14, 2021
82% of Institutional Investors Plan to Increase Cryptocurrency Exposure: Survey
Source Node: 966720
Time Stamp: Jul 7, 2021
Crypto Mining Stocks Rally as Bitcoin Surges Past $44,000
Source Node: 1169301
Time Stamp: Feb 9, 2022
Bank of America Survey: ‘Long Bitcoin’ Is Most Crowded Trade, 75% of Fund Managers See BTC as Bubble
Source Node: 864982
Time Stamp: May 18, 2021