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A chart portends a bullish revival for BTC!

A bearish indicator seen lately suggests that the market will soon enter a significant bullish phase. Indeed, historically, this indicator called “bearish cross” signals the end of the downtrend. Traders and investors would therefore have good reason to hope that bitcoin (BTC) will eventually regain its former value.

The famous “bearish cross” of bitcoin (BTC)

Lately, a three-day candlestick chart has shown the simple moving average (SMA) of the last 100 candlesticks crossing below the 200-candlestick SMA. The graph thus proves that we have arrived at the first bearish cross between the two averages since December 2018. In theory, this “bearish cross” is a technical setup which means that the price of bitcoin (BTC) will continue to fall.

But, in the past, this crossover has often signaled the end of the downtrend, paving the way for a noticeable uptrend. Thus, the bitcoin (BTC) “bearish cross” is a key indicator that should give hope to traders and investors by making them consider the prospects of a bullish recovery.

In fact, crossovers between long-term moving averages are considered contrary indicators. This is because they are focused on past data. Because of this, they usually lag behind in prices.

Nothing is certain, but history could repeat itself!

The first bearish cross was observed in June 2012. At the time, it tricked traders into believing it indicated a larger drop in the price of cryptocurrency. But, we have rather observed an increase in the price. Then there was another bearish crossover in February 2015, and once again it coincided with a peak in sales. Months later, bitcoin (BTC) saw a rally that continued for several years.

In December 2018, the averages crossed downward once again. Traders were again trapped, finding themselves on the wrong side of the market. The price of bitcoin (BTC) then fell dramatically, falling to $3,200. The cryptocurrency then took the next three months to build a base for a rally. This is how, at the end of June 2019, it reached a high of $13,800.

Admittedly, there is no evidence that the performances observed in previous years will be observed in the near future. However, there are reasons for hope, as history could easily repeat itself. Let’s not forget that traders are currently estimating interest rate cuts for 2023.

In 2012, 2015, and 2018, the bearish crossover was seen a few months before a massive rally in the price of bitcoin (BTC). Analysts therefore have good reason to believe that the “bearish cross” observed lately portends a bullish trend in the BTC market. Note that bitcoin (BTC) recently traded on cryptocurrency exchanges at nearly $21,730. This amount is equivalent to a gain of 6% on a 24-hour basis.

Source: CoinDesk

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Luc Jose Adjinacou avatar

Luc Jose Adjinacou

Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.

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