The Bitcoin (BTC) chart is showing a trend reversal signal. Every time this happens, the price of this crypto explodes higher, according to Stockmoney Lizards. The last time such a signal occurred, bitcoin (BTC) saw a performance of 1940%. A new bullrun may then start for this cryptocurrency.
A double dip in Bitcoin (BTC)?
We can see a double bottom forming on the weekly chart of bitcoin (BTC). Indeed, this crypto experienced a drop of 14% during the week of August 15. And according to the analysis of StockMoney Lizards, a double bottom will likely form with this decline. This is a chart pattern signifying the trend reversal of bitcoin (BTC). But before that, Bitcoin (BTC) may make a new low first.
If all the conditions are met, there will probably be a bullish explosion. But what conditions do you say? Here they are :
- breakout of a support zone for several hundred days
- 50% drop after the break of support, followed by a reversal signal on the weekly MACD
- formation of a double bottom after the 50% decline
- breakout of the resistance zone (which was support)
- formation of a new low
On a weekly chart, the first three conditions are met. There are only two remaining scenarios to confirm the reversal of this bearish trend on bitcoin (BTC).
Bitcoin (BTC): a trend reversal signal on the MACD?
The weekly MACD also displays a trend reversal signal. This is the cross between the 12 and 26 moving averages. This signal is very relevant. Indeed, four times in the history of bitcoin (BTC), they always precede a major trend reversal. Incidentally, the last time such a situation occurred, Bitcoin (BTC) experienced an explosive rise of 1940%.
Everything suggests that the same scenario is repeated. This suggests that the next bullish phase will lead the king of cryptos towards $350,000. In any case, it will be necessary to closely monitor this reversal signal which is currently occurring on the weekly chart of bitcoin (BTC).
Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Tremplin.io!