Bitcoin $BTC in possible positive breakout - key indicators
The dizzying heights of $20,000 seem a lifetime away for Bitcoin at the moment and with every potential Bull-run seeming to turn into traps, it could be easy to start to lose faith in the crypto-giant. However there is cause for optimism. The past few months have given rise to some patterns and indications that a breakaway from the negative trend could be soon happening, here they will be analysed.
A - Higher Lows.
In the short term there is absolutely no doubt that Bitcoin has been regressing, however, over the longer term it is clear that the BTC lows are still getting higher, hinting at a maintained positive momentum throughout the period. Furthermore, with a recent increased lows of the MACD (A'), there are serious signs pointing towards a build up of positive momentum
B - RSI Troughs.
RSI is a basic measure of over/under-selling of assets and even though it is fairly simple, its widespread use has made it a useful tool. As seen via the vertical lines of B, the troughs at 30 are almost always directly succeeded by a trend reversal and a period of sustained price level rise. Furthermore, with current RSi at 27, it is below the horizontal dashed 30 RSI cut-off that seems to be the bottom limit for the BTC RSI. Despite being above the usual oversold RSI value of 20, it could still very likely be an indication of the overselling of BTC
C - triangle formation
Triangle formations make up a huge proportion of long term trends and can be found anywhere if you look hard enough, that is why (in my analysis) they are often a subsidiary indicator to other better factors, the same is clear here. What can be seen here is a semi-clear flat bottomed triangle formation however what is more interesting is that it is nearing its apex. at the apex the breakout direction can be hard to predict in solitude, however, when coupled with the momentum in A and the positive trend before the start of this formation, it reasonably predicted that a positive breakout will follow.