Bitcoin has tested $11,000 twice. After that, it has been stalling and failed to keep its ground beyond the pivotal level. Nevertheless, recently, Bitcoin has been forming this kind of signal and it soared $2,500 the last time this signal entered the scene.
As of the moment, the coin trades just slightly below that pivotal level at $10,950. In a medium-term time frame, Bitcoin stays in a bullish state. One certain analyst pointed out the pivotal bullish continuation signal.
Before the $2,500 rally between the mid-$9,000 and $12,000, this signal was last seen which lasted for about a week. If history would repeat itself, Bitcoin will definitely move even higher.
BITCOIN FORMS PIVOTAL BULLISH REVERSAL SIGNAL; IT SOARED $2,500 LAST TIME
Recently, one crypto trader said that over the past year, there was a strong trend continuation because of the ach of Bitcoin’s RSI bullish channel.
He put forth a chart, showing that the coin soared $2,500 for about a week, the last time Bitcoin’s RSI looked as it does now.
It’s worth remembering that in a short-term time frame, this same analyst is bearish. However, this definitely does not invalidate the above analysis. This further means that Bitcoin is currently in the middle of a medium-term breakout.
There are many signals regarding Bitcoin’s short-term chart that says a correction is imminent. That is the main reason why this analyst is bearish on a short-term time frame. Some of his reasons are:
ON-CHAIN ANALYTICS AGREE
The abovementioned trader’s sentiment about Bitcoin engaging in a medium-term reversal was agreed upon by on-chain analytics.
A well-known on-chain analyst, Willy Woo, expressed his thoughts on BTC’s outlook last week:
According to his analysis, a trend reversal takes place every time there is a change in momentum of the value transferred on-chain.
Furthermore, MicroStrategy purchasing over 17,000 BTC in an over-the-counter transaction was the reason for the recent soar in on-chain transactions.