20. September 2020

Bullish for BTC: When Bitcoin last formed this signal, it was up $ 2,500

Bitcoin has stalled after testing $ 11,000 twice and failing to hold out above this crucial level.
At the time of writing, the coin is now trading at $ 10,950, slightly below that crucial level.

Bitcoin remains in a bullish state over the medium term, with one analyst pointing to a crucial bullish continuation signal.

The signal was last seen from mid-$ 9,000 to $ 12,000 in about a week before the $ 2,500 rally.
Repeating history will mean that BTC is on the verge of a notable surge.

Bitcoin forms the central reversal signal

A crypto trader recently noted that Bitcoin’s bullish RSI channel breaks caused a strong trend continuation over the past year.

He shared the graph below, which shows that the last time Bitcoin’s RSI looked like it did now, it jumped $ 2,500 in a week.

Repeating history will mean that BTC is on the verge of a notable surge.

It’s worth noting that the same analyst is bearish on a short-term time frame. However, this in no way invalidates the above analysis, which suggests that Bitcoin is in the middle of a medium-term breakout.

The reason this analyst is bearish in the short term is because there are a number of signals on Bitcoin’s short term chart that suggest a correction is imminent. Some of these reasons are as follows:

Bitcoin has made a Tom Demark Sequential “9” on its daily chart, indicating a bearish reversal.
BTC has confirmed $ 11,000 as resistance by wicking above that level and then failing to hold above that level.

Willy Woo, a prominent on-chain analyst, wrote the following about BTC’s prospects last week:

“Another impulse for coins to change hands has been completed, the next change of direction in the coming weeks should be upwards. It is very unlikely that we will experience any kind of catastrophic price dumping from here. Overall, I don’t expect any mega-dumping, a certain chance of minor lashes in the short periods of time, the resistance fluctuates. Not a bad time to jump in if you’re a spot investor considering the macro with a longer reach. There is ample support for purchases under 10,000, this is a ‚buy the dip‘ scenario. “

His analysis suggests that a trend reversal always takes place when the value of Bitcoin that is being transferred in the chain changes.

From what we know, the most recent spike in on-chain transactions was likely MicroStrategy, which bought over 17,000 BTC in an over-the-counter transaction.