Bitcoin (BTC) may see a “huge bullish transfer” if a traditional set off from the 2021 bull run repeats this week.
In a tweet on Dec. 16, on-chain analyst Matthew Hyland, recognized by the Twitter deal with Parabolic Matt, drew consideration to Bitcoin’s momentum indicator.
Momentum indicator hints at potential “huge bullish transfer”
Whereas nonetheless below $50,000, Bitcoin has already damaged out of a long-term downtrend on the momentum indicator, which measures closing costs towards these from a interval prior to now.
Two such breakouts have occurred this yr, and after every one, BTC/USD went on to see appreciable upside.
“The earlier two instances it broke out of a multi-month downtrend this yr, a large bullish transfer adopted,” Hyland wrote as a part of feedback.
Whereas not a assure of “up solely” worth motion, the momentum knowledge joins a lot of on-chain metrics flashing bull signals this month — a listing that retains rising.
Hyland is thought for his extremely optimistic worth forecasts, and final month caused a stir by predicting that Bitcoin would hit $250,000 in January 2022 whereas invalidating one of many fashionable stock-to-flow worth fashions.
#Bitcoin backside construction on the RSI and Momentum indicators (day by day time-frame) look similar to what occurred in September earlier than the reversal up began
•Momentum has damaged out
•RSI wants an in depth above resistance to substantiate breakout
•Bitcoin worth ready to breakout pic.twitter.com/XDwiUsSj2U— Matthew Hyland (@Parabolic_Matt) December 15, 2021
In additional evaluation, he famous that each the momentum indicator and Bitcoin’s relative energy index (RSI) on day by day timeframes are mimicking habits from September, when the market put in an area backside earlier than rising to present $69,000 all-time highs.
Greenback dives publish Fed
Spot worth motion was in the meantime quieter on Dec. 15, Bitcoin lingering round $49,000 regardless of a conspicuous drop within the U.S. greenback.
Associated: Bitcoin sheds ‘dumb money’ as retail buys most BTC since March 2020 crash
The U.S. greenback forex index (DXY), which measures USD towards a basket of buying and selling companion currencies, reversed its prolonged bull run final week, with Dec. 1 seeing a pronounced comedown, knowledge from TradingView reveals.
Historically inversely correlated with BTC, DXY’s drop follows a boost for crypto and equities alike courtesy of the Federal Reserve.
