Although Bitcoin’s intraday performance has been relatively bearish lately, this may be about to change. That is at least if several key Bitcoin metrics are to be believed. Furthermore, this could herald a significant shift in the performance of the cryptocurrency market as a whole.
Is the macro Bitcoin bear cycle over?
Firstly, it is worth prefacing with a brief recap of the cryptocurrency market during late 2019. Specifically, the crypto market has seen a bearish trend since the beginning of November. Nevertheless, speculation is rampant that this may be about to change.
Additionally, some key metrics are now suggesting that this could soon be the case. Even though Bitcoin has had multiple attempts to break $9,500 – which have failed to materialize – Bitcoin could still bounce for a end-of-year cryptocurrency rally. As such, the Bitcoin bear cycle may be drawing to an end.
First and foremost, the Bollinger Bands Indicator suggests that the next milestone for Bitcoin’s price is somewhere around the $8,000 level. If Bitcoin breaks through this key line, the premier cryptocurrency could likely surge towards $9,000.
Another key indicator is the Moving Average Divergence Convergence (MACD) indicator. This trading metric reveals changes in the direction, momentum and strength of an asset’s price. Furthermore, the MACD indicates that Bitcoin will soon see a bullish cross when the daily trading candle closes.
Key metrics suggest bullish cross
If this is the case, Bitcoin could be about to embark on a trend reversal. Consequently, the more than month-long bearish trend could be broken. As such, several observers are now seeing this as a turning point for Bitcoin’s short-term trend and a buying signal.
Moreover, the Bitcoin CME gap is also notably closing at a high. This gap has served as a trading indicator recently, and is as such seen as another buying signal for the premier cryptocurrency. According to one take on this, Bitcoin could see a 7% increase in the immediate future.
If this comes to pass, Bitcoin – and the wider cryptocurrency market – could see an end-of-year rally. This would likely be reminiscent of the famous 2017 end-year Bitcoin rally. This saw Bitcoin surge to its all-time high of around $20,000.
There are plenty of lofty Bitcoin price predictions around, however these three key metrics are more concrete than most. Nonetheless, it is worth restating that the future is always uncertain. The cryptocurrency markets are always fickle. However, key market metrics such as these could provide valuable insight into the price dynamics of the market – accurate or not.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.