The last time this signal flashed, Bitcoin's price had risen by 50% - Has it returned, will history repeat itself?








In the past 3 weeks, since Bitcoin reached $ 3,800 during a sell-off event, the market has recovered extremely strongly. In fact, the cryptocurrency has risen more than 10% in a matter of hours, from $ 6,600 to $ 7,200 in a strong upward swing that helped liquidate tens of millions of short positions.


Price action has convinced many that BTC has established a decisive bottom, especially considering the macro trends that continue to support Bitcoin. But, according to a trader many times correctly predicted, this is unlikely.


Bitcoin has bottomed out not yet?


The past few weeks have certainly been positive for Bitcoin. Cryptocurrencies have established a series of higher lows and higher lows, indicating a prominent signal of a rising trend.


But, according to trader Smart Contracter, when looking at the Bitcoin chart on the Elliot Wave analysis platform, it still seems a bit off. He shared on April 3:




"There are many different ways to BTC predictions.


Such as, wxy, bigger triangle, long passing more, I'm not too sure, one thing that stands out is the series of 3 wavelengths and the lack of 5 wavelengths.


For this reason, I think it is still too early to predictions about bottom


His view was corroborated by expert Elliot Wave, who explained that Bitcoin's recent price increase along with falling volume seems to be “correcting, 'reinforcing the possibility of lower reversals. .


Before that, Smart Contracter had offer in mid-March that Bitcoin would return to 2018 lows of $ 3,200 by the end of the month.


Track record reputation


While many investors are skeptical about the validity of Elliot Wave analysis, Smart Contracter has a reputable track record in analyzing the ever-volatile cryptocurrency market, giving a certain level of confidence to the average. Your comment.


In mid-2018, when Bitcoin was operating in the bear market, traders expected the asset to find its final bottom at $ 3,200:


“TOh guess bottom exactly at $ 3,200 with difference $ 200 about two side ”.


By mid-December, his prediction was proved right when Bitcoin dropped from $ 6,000 to a low of $ 3,150 over a few weeks and set a macro bottom at that level.


Moreover, he predicted short-term price movements over the past few months, such as the strength of Bitcoin earlier this year and the cryptocurrency market plunging in mid-March.


However, there is currently an extremely bullish signal appearing on the BTC chart. The last time this signal flashed the price increased by 50%, will history repeat itself?


Bitcoin can continue to climb higher


According to the news Bloomberg announced on April 3, Bitcoin recently surpassed important technical resistance, allowing DVAN Pressure Gauges to buy and sell to form a "positive divergence and buy signal".


bitcoin


In addition, Bloomberg noted earlier this week that the "GTI Vera convergence divergence measure up and down" shows that the Bloomberg Galaxy Crypto Index includes Bitcoin, ETH, LTC, BCH, XRP. and EOS "issued the first buy signal in more than 3 months".


Both indicators are flashing buy signals before Bitcoin gains 50% and most other cryptocurrencies from mid-December to February.


Other factors are booming


It is not only strong technical indicators, it is also one of the basic indicators.


Former institutional trader Qiao Wang of Messari recently shared a chart showing Bitcoin order-book on Coinbase Pro.


Although not the representative of other exchanges, there are obviously more traders bidding than selling, with the number of orders worth nearly 24,000 BTC to the price of $ 2,000 and only 4,000 BTC placed on 12,000. dollars. "There is no longer any sign of a longer-term price increase," Wang wrote.




“Order book BTC… While I am cautious in the short term due to macro conditions cannot receive any Any longer-term bullish signal than this”.


Moreover, the next Bitcoin halving is less than 40 days away.


Trader believes that this event will have a decisive positive impact on the market and cite econometric models from PlanB analyst. The model shows that the fair value of Bitcoin will increase by more than 1,000% after the event, as PlanB sees the BTC value as a result of its own scarcity.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Thuy Trang


According to AZCoin News




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