While the upward price pressure has slowed, resulting in Bitcoin (BTC) posting a mere 0.15% gain in the past 24 hours, some are sure that the cryptocurrency’s chart structure remains bullish. Murad Mahmudov, a founding partner at up-and-coming crypto fund Adaptive Capital, recently broke down his reasoning as to why BTC holding above the $5,500 region could be “quite bullish.”
The Bitcoin Megamoonsoon
In a 22-part Twitter thread posted Saturday, Mahmudov, who has risen to prominence to become one of the most well-respected voices in the cryptocurrency ecosystem, drew attention to 20 reasons why Bitcoin is currently bullish. Honestly, 20 may be too many to go through, but NewsBTC will break down the important tidbits.
Firstly, Bitcoin is currently trading in the midst of an ascending channel, marked by consistent higher lowers and higher highs. With BTC continuing to hold this pattern with an impeccability, a move higher to potentially break out of the upper bound of the channel seems likely.
Next, the Stochastic Relative Strength Index (RSI) and the traditional RSI are both showing bullish signs, both accentuating that the crypto market isn’t overextended and thus has room to run.
Thirdly, BTC is currently trading above key moving averages, like the 50-week simple moving average and 89-week exponential moving average, which “caught multiple local bottom and top areas in both previous and current cycles.”
And lastly, as hinted at in previous reports, there has been an unprecedented rally in the amount of BTC upon in short contracts, resulting in postulation, from Mahmudov and others, that a massive short squeeze may soon be inbound.
From Crypto Bear To Bull
All this marks a confirmation that Mahmudov has flipped from bear to bull. As NewsBTC reported on a number of times during late-2018 and early-2019, the Adaptive Capital partner was overtly bearish on a number of occasions. Often, he noted that Bitcoin still had a chance to fall to $1,700, citing historical factors to try to convince investors that November’s sell-off may have just been the “Little Capitulation” before the “Final Capitulation,” coupled with the idea that BTC’s long-term cycles dictate that a rally this soon may be illogical.
In one analysis, he noted that the waning number of mentions of “Bitcoin” on Twitter was an “absolute disaster for the price in the medium-term.” He opined that this accentuates how there are “far fewer people who care about decentralized, sovereign, uninflatable currency” than it may seem from the surface, and how little effect 2017’s parabolic run-up had on this community’s size.
Now, however, he revealed in a recent Tone Vays Youtube episode that he is 75% sure that the cryptocurrency market has found a long-term floor. And this time, it doesn’t seem like he will be wishy-washy at all, as all signs seem to be leaning in favor of the bulls. His peers would agree.
Featured Image from Shutterstock
The post Analyst: If Bitcoin Holds Above The $5,500 Region, A ‘Megamoonsoon’ May Soon Grace Crypto appeared first on NewsBTC.
Post written by our friend Nick Chong
Syndicated from NewsBTC.com