- Bitcoin & # 39; s short-term 50-period moving average is moving closer to the long-term 100-period moving average on the weekly chart, suggesting a potentially bullish "gold cross" formation for for the first time in 3.5 years.
- However, in the short term, the total weekly volume has fallen from period to disorder as indecision continues to seize the market.
- The price action is captured between the 100-day and 200-day moving average (MA)). The next big move, however, is likely to determine trend bias going forward, if a company that is close to or below these averages is confirmed.
Bitcoin (BTC) is looking at producing a bullish long-term signal that has not been seen in 3.5 years. .
The 50-period and 1
A cross of 50-period MA moving up the slower 100-period MA, known as a golden cross, usually suggests a sharp shift in a trend and can act as a confirmation of a bullish bias for the long-term view.
The last time the bull cross happened on the weekly chart was way back in May 2016, when the price of BTC began to rise from $ 438 to close to $ 20,000 in December 2017 – an increase of 4800 percent. If MA continues to convert as it currently does, the cross is likely to appear in late December or early 2020, but it is still too early for a precise conversation.
There is an inherent risk in making such comparisons from previous years, as market conditions have changed significantly. Still, there is merit to seeking further confirmation of the long-term trend, since BTC's mining rewards halving in May 2020 is likely to stir up a pile of market activity as supply-cutting events approach.
two weeks ago, an indication of market indecision at a fairly stagnant price, while RSI hardly trends bullishly above 52.7 (neutral is 50).
However, should the two lines converge and then cross bullishly, that would be a strong indication that the 2019 reversal rally has legs. With a strong BTC fundamental event happening just around the corner, it's important to note the bullish signals on larger timeframes.
More immediately, the daily chart suggests market balance, as prices have remained largely within a range of $ 650 for nearly two weeks.
BTC's price action has been trapped between 100-day and 200-day MAs for 12 days.
Generally, when prices are above 200-day MA, the long-term trend can be considered bullish. Conversely, if prices are below 100-day MA, there is an indication of baustic conditions in the medium term (30-60 days).
The present scenario embodies the indecisive feeling across the market. A repeated failure to close over the 100-day MA can open doors to $ 8,800 in the immediate short term, as previously discussed.
Indecision will continue to a firm above $ 9,573 (100-day MA) or below $ 9,180 (200-day MA) with conviction, until then continued sideways spreads can be expected.
Publication: The author has no cryptocurrency assets at the time of writing.  Bitcoin image via Shutterstock; Diagrams of TradingView