Late last month, Bitcoin (BTC) saw a jaw-dropping trading session, with the cryptocurrency’s price gaining 42% in a 24-hour time frame; this was BTC’s best daily performance in over six years. This move, which brought the asset from $7,300 to $10,500, shocked many, with many seeing the surge as entirely non-sensical.
Though, retrospective analysis has shown that $7,300 was the price of the 200-day moving average on the CME futures market at that time, making the 42% bounce extremely peculiar. While there is no guarantee a bounce will happen again, Bitcoin is yet again knocking on the door of the 200-day moving average on the CME’s chart. What do analysts expect to happen this time around?
For those unaware, the 200-day moving average of any asset is seen by technical analysts as a level indicative of macro trends; trading above the level implies a macro bull trend, trading below the level implies a macro bear trend. As pointed out by analyst Mexbt and as mentioned earlier, Bitcoin tapped the 200-day moving average on the CME. This time, this price hasn’t reacted, with BTC flatlining just a smidgen above $8,000. While a 42% rally off the 200-day moving average is highly improbable, there are some signs that bulls may be ready to take over the cryptocurrency market yet again.
Sure, the aforementioned is all well and good, though a key bear signal just appeared. The signal in question, the Hash Ribbons crossing bearish. As this outlet explained in a recent report, this signal implies that miners are capitulating, selling their coins to keep the lights on, cash out, or to upgrade their systems for the future. The Hash Ribbons inverted literal days before Bitcoin began its 50% decline from $6,000 to $3,000. Also, this signal was seen just days before a 30% drop in 2016.
