Bitcoin Keeps Its Pedal To The Metal, Eliciting Bullish Response From Prominent Analysts
For some reason or another, Bitcoin (BTC) has continued to rally into Saturday. As of the time of writing this, the crypto asset is trading at $5,725 on most major exchanges, while altcoins have begun to play catch-up.
While some fears that this rally is unsustainable, especially with the debacle that both Bitfinex and Tether are both going through, analysts have kept a bullish tone across the board.
Bitcoin Could See A Further Move Higher
According to David Puell, the head of research at Adaptive Capital, Bitcoin’s chart is currently showing an array of bullish signals, both in terms of technical indicators and pure price action.
In a simple chart posted on Friday night, the investor remarked that Bitcoin is currently trading in a broadening ascending wedge, a pattern defined by legendary chartist Bulkowski as a catalyst for bullish continuation. Bitcoin Bravado’s Jack, who noticed this pattern alongside Puell, remarked in his own tweet that such wedges are often never seen in bear markets, and are instead, a reversal pattern that commences a bull run.
$BTC: I am scared to bid this insanity, but…
Le long… le long… pic.twitter.com/EqgQmSBwYY
— David Puell (@kenoshaking) May 4, 2019
But according to Puell, this isn’t the only bullish sign. He looks next to volume, which has been on the decline since April 1st’s boom past $5,000 but has begun to recover with Friday’s uptick. Remarking on Friday’s volume candle, he writes “Ce n’est pas mal!”, which for those not versed in French, means “this is not bad.” Indeed, a notable amount of trading activity signals that stronger movements can be seen.
Related Reading: Prominent Analysts Divided Over Bitcoin Bottom: Let’s Look At The Two Sides
Next, the Adaptive Capital partner, who works alongside prominent crypto analyst Murad Mahmudov noted that the lack of resistance and sell orders in the $5,700 to $5,850 range may soon allow Bitcoin to move to that level.
And last but not least, Puell points to the fact that the Relative Strength Index (RSI), Chaikin Money Flow (CMF), and On-Balance Volume (OBV) readings, which all measure if an asset is either technically overbought or oversold are currently breaking to the upside. Puell didn’t give an explicit short-term prediction, but it is clear that he doesn’t intend to short BTC at the moment.
And he isn’t the first to think so. In a tweet posted Thursday, Peter Brandt, a legendary commodities trader with decades in the biz, revealed that Factor’s benchmark moving average for Bitcoin’s weekly chart has begun to trend higher. The last time such an event was seen was when BTC “began its move from $340 to $20,000.”
It is important to note that last time Factor’s moving average reversed from a downtrend, BTC was susceptible to one more pullback before embarking on the aforementioned parabolic run.
The last time Factor’s benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800. pic.twitter.com/uFJSkV9NwM
— Peter Brandt (@PeterLBrandt) May 2, 2019
But will historical action be indicative of future performance? At this point, crypto diehards can only hope.
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