This week started with the leading cryptocurrencies going green, which always makes anyone holding crypto pretty happy. Furthermore, several price indicators suggest that Bitcoin is going to keep rising and certainly squeeze out the bears in the short term.
Cointelegraph says, “As the week begins, a group of measurements — some surprisingly accurate historically — are combining to make traders firmly bullish on BTC.” One of he leading indicators is called the Guppy. This is a collection of exponential moving averages which has flashed green on the daily chart for the first time in around 300 days.
According to analysts this is significant because the last flip from red to green for Guppy was on 9th April, 2019, coinciding with Bitcoin’s rapid rise to highs of $13,800. Guppy also went green on 14th January 2018 when Bitcoin went over $9,000.
Another indicator is called the Puell Multiple. This is a tool that is used to identify cryptocurrency’s price cycles and it enables traders to look at the price from a miner’s perspective and establish when the value of newly-mined Bitcoins is historically too high or too low. Cointelegraph says that currently, the indicator suggests Bitcoin is significantly closer to the “too low” area than its lifetime highs.
Traders are showing enthusiasm again thanks to Bitcoin surpassing $8,000 and that is now a new support level for BTC. It has gained 3.8% since Friday. Micahel van de Poppe said, “Nice breakthrough of $8,600 level and we’re back in the range. This means that the $8,000–8,100 level has now flipped as support.”
The Mayer Multiple is also firmly supportive of Bitcoin as a buying opportunity this week. When the multiple is below 2.4, Mayer says, long-term Bitcoin buys saw “the best long-term results.” The current multiple is 0.97 and has been higher 63% of the time since Bitcoin was created eleven years ago.