Since plunging to $6,400 around December 18th and rocketing back to $7,000 the day later, Bitcoin has stalled, flatlining in the low-$7,000s as the market remains largely directionless.
But on Saturday, BTC started to show that it had room to run, with the price of the asset bending higher. And by the turn of the day, Bitcoin had crossed $7,300 from $7,200, leading a trader going by CL to note that the 50 and 200 moving averages on the four-hour chart were about to see a bull cross.
We're currently 3$ away to achieve a golden cross on 4hr.
As we consolidate for the most prolonged period since at 10k this summer, long term moving averages are becoming less bearish every day that passes by.
200MA on 4hr is bending up since 3 days ago. pic.twitter.com/auLbODe8nE
By Sunday morning, due to a price jump to $7,400, the cross had taken place, with trader Big Chonis noting that that the moving averages had moved over one another. This is important as it may mark a shift in directionality for the cryptocurrency market, which has largely trended lower in the past few weeks, evidenced by the strong drop to $6,400 just two weeks ago.
Sure, previous bull crosses in these specific moving averages haven’t always preceded surges in the price of Bitcoin, though they are a sign that bulls do have more control than they did, say, a week ago. And interestingly, other indicators agree with this lofty sentiment.
Bitcoin Chart Prints Bullish Signs
According to a recent tweet from full-time cryptocurrency trader Crypt0mer, Bitcoin’s one week chart recently printed an extremely bullish signal: the one-week Klinger Oscillator, which tracks volume and price to determine trends, has printed a buy for the first time since February 2019, when BTC was trading around $3,700. He remarked that this is a sign that the bear correction is over.
That’s not to mention that BTC is currently trading in a seeming inverse head and shoulders pattern, one that could mark the macro bottom for the recent bear market.
Per previous reports from NewsBTC, though, for Bitcoin to satisfy this chart pattern, it will need to break past $7,650 in the coming days, setting the stage for a further rally to $8,000 and beyond.
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