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While this dream of another parabolic rally was fleeting for the second half of 2019, it appears that 2020 may be the start of something massive in the Bitcoin space.
Bitcoin To Soon Go Parabolic, Suggests Forming Signal
Prominent cryptocurrency trader Byzantine General, who earlier this month noted in an analysis that the Bitcoin bottom most likely came in at $6,400, pointed to the below chart on Friday: in it, it shows BTC’s one-month chart with so-called Heiken Ashi candles, which allows traders to more easily “spot market trends and predict future prices” than with normal candles.
What’s interesting about this chart is that the current monthly candle for January is printing a green doji pattern, which would suggest that the long-term Bitcoin price trend is turning positive and that there is an imminent macro reversal on the horizon, if the rally to $9,000 doesn’t count anyway.$BTC
Oh… Oh my. pic.twitter.com/LN5lQFftJW
— Byzantine General (@ByzGeneral) January 17, 2020
So why does this simple candle formation suggest that Bitcoin’s price is about to rocket higher by maybe hundreds of percent from here?
Well, it all has to do with historical precedence.
Below is a chart from NewsBTC, showing every time the Heiken Ashi candles flipped from red to green on a monthly basis for BTC.
While it is hard to tell exactly what is going on to the fact that Bitcoin has traded on multiple orders of magnitude in the past decade, the chart shows that green monthly Heiken Ashi candles have almost always resulted in parabolic surges that brought BTC thousands of percent higher than where it started.
It is important to note that the signal has not fully formed: it is currently only January 17th, meaning that the monthly candle has two weeks to close.
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However, with analysts currently charting short-term upside for this market towards $10,000 and beyond, there is a large likelihood the candle will end January in the green, boding extremely well for bulls.
Not the Only Positive Signal
It isn’t only the Heiken Ashi candles that suggest Bitcoin is on the verge of going parabolic for the umpteenth time in its history.
Financial Survivalism, a pseudonymous analyst that last week called Bitcoin’s surge into the $8,000s when the asset was trading in the high-$6,000s, said that he thinks BTC will trade at $20,000 by July 1st of this year, which would clearly constitute a parabolic chart.
While this may sound lofty, he went on to rationalize the prediction, drawing attention to an array of technical signals implying that bulls are about to assert a large amount of control over the market:
The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.
The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.
The one-week Relative Strength Index for Bitcoin is “getting ready to test 50,” a level that if broken through may imply dramatic upside.
The one-day Ichimoku Cloud has formed a bullish TK cross.
Also, there’s the simple fact that the halving for Bitcoin is four months away. Analysts have shown that the 120 days out from the halving have always marked the start of a parabolic or dramatic surge in the price of BTC prior to the event.
Featured Image from Shutterstock The post appeared first on NewsBTC.