- Bitcoin has experienced a strong rally over the past two weeks.
- One analyst now comments that one of its custom indicators is „buying“ for the third time in recent months.
- This indicator is important as it has predicted critical retracements and rallies.
Bitcoin prints macro buy signal
Bitcoin has experienced a strong rally over the past two weeks. However, technical trends show that the coin could rise even further in the coming weeks and months.
A crypto-asset trader and youtuber shared the chart below on 28 October. It shows that an important technical indicator has formed a „buy“ for the third time in recent months.
This indicator is important because it predicted critical retracements. A sell signal was printed near the February highs, followed by a sharp drop of over $10,000 towards $3,500.
The indicator also issued a number of buy signals during the retracements of the previous exponential rally from 2016-2017.
This shows that Bitcoin has room to move higher in the coming weeks and months.
This is not the only signal indicating that Ethereum Code Review is about to enter a macro uptrend.
For example, crypto-asset analyst Josh Olszewicz has divided the chart below. It shows that Bitcoin has recently formed a bullish TK cross according to the so-called Ichimoku cloud indicator on the one-day chart.
Olszewicz’s analysis suggests that the Ichimoku cloud on the daily chart has a very positive hit ratio according to historical market data.
Another chart he shares shows that the indicator has had a hit rate of 80% since the 2013 rally. For example, Bitcoin has shown a bullish crossover similar to the one shown below before rising towards its all-time high of $20,000.
Short term withdrawal possible?
JPMorgan believes that a retraction is possible in the near future.
The company’s analysts write that their open interest indicator for the Bitcoin Futures market on the CME shows that the asset is overbought:
„To derive the position in Bitcoin futures, we use our proxy method for open-interest positions, where we look at the cumulative weekly absolute changes in open interest multiplied by the sign of the weekly price change of the futures“.
Other trends such as the extreme profitability of Bitcoin traders also indicate that the asset may be overbought in the near future.