Bitcoin (BTC) plans to move higher and further squeeze bears in the short term, several price indicators suggest.<\/p>\n
As the week begins, a group of measurements some surprisingly accurate historically are combining to make traders firmly bullish on BTC.<\/p>\n
Leading the positive signs is a useful but somewhat forgotten indicator dubbed the Guppy. This is a collection of exponential moving averages which has flashed green on the daily chart for the first time in around 300 days.<\/p>\n
The interval is significant the last flip from red to green for Guppy was on April 9, 2019, coinciding with Bitcoins rapid rise to highs of $13,800.<\/p>\n
Before that, Guppy also turned bullish on Jan. 14, 2018, when Bitcoin briefly rose above $9,000 on the way down from the all-time high a month earlier.<\/p>\n<\/p>\n
Bitcoins Guppy indicator bull and bear phases. Source: Hsaka\/ Twitter<\/p>\n
A second sign that bullish momentum is building for Bitcoin lies in the so-called Puell Multiple.<\/p>\n
Used to identify the cryptocurrencys price cycles, the tool allows traders to tell from a miners perspective when the value of newly-mined Bitcoins is historically too high or too low.<\/p>\n
Puell spiked during the 2017 highs, bottoming a year later in January 2019 when BTC\/USD traded at under $4,000.<\/p>\n
At present, the indicator suggests Bitcoin is significantly closer to the too low area than its lifetime highs.<\/p>\n<\/p>\n
Bitcoin Puell Multiple with peaks and troughs highlighted. Source: Glassnode\/ Twitter<\/p>\n
Zooming in, steady enthusiasm is already creeping into traders forecasts once again. For regular Cointelegraph contributor Michal van de Poppe, current action means $8,000 has now formed a fresh support level.<\/p>\n
BTC\/USD has gained around 3.8% since Friday, having bounced off local lows around $8,200.<\/p>\n
Nice breakthrough of $8,600 level and we're back in the range. This means that the $8,000-8,100 level has now flipped as support, he summarized in a Twitter update on Jan. 27.<\/p>\n
Van de Poppe continued:<\/p>\n
Eyeing to see a retest of $8,500. Holding that and we can aim for $8,900.<\/p>\n
A classic guidance signal for Bitcoin comes in the form of the Mayer Multiple, which is also firmly supportive of Bitcoin as a buying opportunity this week.<\/p>\n
The brainchild of Proof of Keys organizer, Trace Mayer, the Mayer Multiple divines to what extent it is profitable to buy Bitcoin at a particular time.<\/p>\n
To arrive at its conclusions, it uses the current Bitcoin price versus its 200-day moving average. When the multiple is below 2.4, Mayer says, long-term Bitcoin buys saw the best long-term results.<\/p>\n
The current multiple is 0.97 and has been higher 63% of the time since Bitcoin was created eleven years ago.<\/p>\n<\/p>\n
Bitcoin Mayer Multiple with 2.4 boundary highlighted. Source: Mayermultiple.info<\/p>\n
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Bitcoin Price Indicator That Called 2019 Bull Run Flashes Green Again - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) plans to move higher and further squeeze bears in the short term, several price indicators suggest. Continue reading