Five Bitcoin Price Charts That Suggest Bulls Have Little To Fear
02 September 2021 - 7:17PM
NEWSBTC
Bitcoin price is back at $50,000 and until either support at
$30,000 is broken to the downside or a new all-time high is set,
the direction of the market won’t be as distinguishable.
Fundamentally, the network continues to grow, and sentiment remains
high surrounding the cryptocurrency space. Better yet for bulls,
here are five outrageously bullish charts filled with technical
signals that suggest that bulls have very little fear about what
could come in the months ahead. Five Bitcoin Price Charts
Supporting New ATHs Weekly RSI is holding in the bull zone |
Source: BTCUSD on TradingView.com To begin with the easiest chart
to read, we’ll present the weekly Relative Strength Index. The
current leading cryptocurrency by market cap just reclaimed the
de-facto line in the sand between a bull phase and bear phase. For
those looking for evidence of a bear market, you won’t find it on
the chart above. After the peak was put in December 2017, Bitcoin
price immediately plummeted below the line to kickstart the most
recent bear market. The weekly RSI is back holding above this line
– which following the December 2013 peak was lost and a bear market
began. Parabolic SAR and Elliott Wave support further upside |
Source: BTCUSD on TradingView.com The weekly LMACD has also
recently flipped bullish, but the comparisons to previous bull
markets aren’t as immediate apparent. If anything, there are more
similarities with the 2013 cycle versus 2017, where the indicator
never fell below the zero line after moving above it. Bitcoin price
action currently has pushed momentum back above the zero line and
is currently crossed bullish. Related Reading | Proof-of-Work:
Bitcoin Back Programs That Put Your Money To Work For You A
parabolic curve supports the price action in all examples above and
below. Also in the chart directly below, the Ichimoku shows that
during past bearish phases, Bitcoin price action sliced through a
steep and thin cloud, while price action today is well above the
cloud on weekly timeframes. BTCUSD is well above the cloud |
Source: BTCUSD on TradingView.com Another bullish impulse would
cause yet another steep rise in the cloud, which the cryptocurrency
could later cut through to begin the next bearish cycle. But that
is likely still plenty of weeks away according to the indicator.
Not everything is rosy, however, according to the Ichimoku. Bitcoin
is currently above the baseline (Kijun-Sen) and conversion line
(Tenken-Sen), but the two lines are still crossed bearish. A bull
cross driven by another impulse could do the trick. The Bollinger
Bands are curling upward while above the middle-SMA | Source:
BTCUSD on TradingView.com The Bollinger Bands on weekly timeframes
also hint another bullish impulse could soon be coming. Prior to
past impulses, the bottom bands curled upward, before expanding in
both directions with price action passing the middle-SMA then
riding the upper band to local highs. Another ride up the bands
after a third major bullish impulse might be the final trip to the
final bull market peak. Elliott Wave International recently shared
a video discussing Bitcoin and a potential fifth wave brewing.
Packaged with the video was a detailed explanation of the study
where Elliott Wave Theory was compared to a “roadmap” that could
potentially be followed. Parabolic SAR and Elliott Wave support
further upside | Source: BTCUSD on TradingView.com If Bitcoin price
really is finishing up a corrective wave four and about to enter a
wave five impulse, it would be the grand finale for this cycle. For
added measure, the Parabolic SAR is turned on, highlighted in green
for the sake of showing a new uptrend could be in its early stages.
But the real meat and potatoes of the chart are the waves and their
structure. Drawn from where Bitcoin broke down to bear market lows
to across both major local highs since the bottom was put in, we
have a potential target for where a wave five might end. According
to Elliott Wave Theory, wave two and four alternate in length
and severity, and the third wave is typically the longest,
strongest, and easiest to recognize. Related Reading | New To
Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course Wave
five is usually around the same length in power and duration as the
first wave – and also just so happens to line up with the previous
mid-cycle pullbacks. If accurate, the cryptocurrency could run
around 325% or higher from the bottom around $30,000 and bring the
high of this cycle to around $125,000 to $150,000 per BTC. Fifth
waves can extend, however, and match or even exceed the length of a
wave three, so truly any outcome is possible with an asset with
this much potential application. Follow @TonySpilotroBTC on Twitter
or via the TonyTradesBTC Telegram. Content is educational and
should not be considered investment advice. Featured image
from iStockPhoto, Charts from TradingView.com
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