There will be a Bitcoin bull market after $350

13.03.2019 / 12:41

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Bitcoin (BTC) needs to climb at least anther $350 to confirm a long-term bullish reversal, technical charts suggest.

The leading cryptocurrency by market value is currently trading at $3,903 – having rallied 24.8 percent from last year’s low of $3,122 in the last days of the year. This positive trend has arisen hopes that the sell-off from the record high of $20,000 from late 2017 is over.

Validating that argument are a number of long duration technical indicators showing early signs of bullish reversal. One of them, the weekly moving average convergence divergence (MACD), is at its most bullish for over a year. The money flow index, which includes both bitcoin’s price and trading volume, is also going up, validating the bullish divergence that started in December.

That said, BTC is yet to invalidate the most basic of all bearish technical indicators – a lower high, lower low.

On the weekly chart, BTC has been charting regular bearish lower price highs and lower price lows since January 2018. These were essentially shallow bounces that ended up recharging the engines for a drop to further lows.

The last lower high of $4,236 from the last days of 2018 failed to challenge the preceding lower low of $3,122. Since then, Bitcoin is creating higher lows in the region of $3,300.

While the latter is evidence of seller exhaustion, a bullish reversal will be confirmed if and when Bitcoin prints a higher high above the one from the end of last year. In other words, a break above that level is needed to mark a successful transition from bearish to bullish trend change.

As bitcoin’s price is currently trading at $3,890, that target is still $350 away.

Source: CoinDesk

Trader Georgi Bozhidarov

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There will be a Bitcoin bull market after $350

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