We are currently in the last week of the year. A tough time for the crypto industry. BTC, the leader in terms of market capitalization, has indeed plunged by 64%. However, there are several bullish setups showing up on the price of this crypto. This could signal the arrival of a bitcoin bull run next year. Check out this analysis.
Several bullish signals on Bitcoin (BTC)
Indeed, we can see several bullish signals on the weekly chart. These are relevant signals, since they occur on a long-term scale. Thus, thanks to these configurations, we can envisage a bullish rally of 215% next year. Without further ado, let’s talk about these bullish signals present on the bitcoin (BTC) chart.
First, there is the RSI divergence. Indeed, since June 12, the price of BTC has made lower and lower lows. While, during the same period, the RSI made higher and higher lows. This shows that buyers are starting to fight back, and gaining momentum. In addition, we also note the presence of a trend line on this oscillator. This line has already been hit three times. Thus, it could be that the fourth touch will be a breakout. Then there is also the imminent crossing of two moving averages. These are the MM50 and the MM200. This crossing, called “Golden Cross”, is a very relevant reversal signal. Therefore, once these two moving averages cross, it could be that the price of bitcoin (BTC) will do a long-term bull-run.
Two major obstacles
Despite these major bullish setups, there are two major hurdles for buyers. The first being the area around $47,300, which has served as critical resistance this year. Indeed, after hovering around that level in March, bitcoin (BTC) fell 65%. Therefore, this level should not be neglected. The second major hurdle is found a bit higher at $64,500. For a follower of the SND strategy, this level is very relevant. Indeed, it is a “quasimodo”, or in common trader parlance, a “shoulder”. Thus, it could be that the price makes a ETE pattern (shoulder-head-shoulder) once it arrives in this zone.
So, based on all these signals, it looks like bitcoin is ready for the next bull-run. However, buying right away can be risky. Indeed, the price could find the bottom at the $13,500 support ahead of the bullish rally.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!