Key Bitcoin Price Pattern Suggests Imminent Chance of Bullish Reversal

Key Bitcoin Price Pattern Suggests Imminent Chance of Bullish Reversal

A fresh market prediction is now saying that the cryptocurrency market may soon reverse. Although Bitcoin is currently trading around $8,000, this new prediction indicates that there is a substantial chance for a reversal.

Will Bitcoin soon see a bullish market reversal?

Specifically, the key metric giving hope to those longing for a Bitcoin reversal is no other than the moving week average. A moving week is a basic technical analysis tool for understanding price data and trends.

Furthermore, the moving average allows technical analysts and cryptocurrency investors to plot the primary price line for cryptos. Moreover, a fresh market analysis suggests that this metric indicates that Bitcoin could be in for an uptick in its market price.

This comes as Bitcoin is currently trading at $8,112. However, the price of Bitcoin has taken a dip from higher levels during the last month, and some observers question its trend. Moreover, some analysts have even said that Bitcoin risks a more substantial drop to the mid-$7,000s.

As such, those that long for a resurgence of more bullish market sentiment will be happy to hear some analyst suggest a bullish reversal. Specifically, the 100-week and 50-week moving averages are now beginning to converge. 

These metrics will likely begin their crossing in the first week of December. Historically, this has been seen as a decidedly bullish indicator for the cryptocurrency. As such, this could well mean that Bitcoin will see another bullish December, just as was the case back in 2017.

Crypto market running out of bearish momentum

If taking a look at the 200-moving average, this is currently somewhat below $5,000. Nevertheless, it is worth remembering that the 200-week average was one of the critical factors in forming the 2018/2019 support.

Furthermore, Bitcoin’s price is currently in a “golden pocket” between 61.8% and 65% retracement levels from the highs of October’s last week. Furthermore, the “Moving Average Convergence Divergence” (MACD) indicator is currently trending towards zero.

This, in combination with the moving averages previously brought up, indicate that Bitcoin’s market performance is running out of bearish momentum. Consequently, this could signal an impending reversal which could take place somewhere above the $8,000 line.

Furthermore, this ties into a recent report by Cointelegraph, which indicated that Bitcoin had a “68% chance” of breaking through its current bearish trend and instead move towards a target price of $9,000. 

Image Source: Forbes