2019-11-20 03:42 |
The long-term Bitcoin price has given a positive signal — which suggests that a new market cycle has begun.
Cryptocurrency analyst and trader @CryptoCowJones stated that the Bitcoin price has given a signal which has never previously failed. This is an upward breakout of the Kumo cloud.
The Kumo cloud represents resistance. It is created by two lines whose relationship is very similar to a long- and short-term moving average (MA). Therefore, if the short-term line is above the long-term one, the cloud is green — while when the opposite is true the cloud is red (grey in the tweet).
Let’s analyze this signal.
$BTC has NEVER had failed Kumo breakout in its entire history on the weekly chart#bitcoin pic.twitter.com/CnfJk9GUY5
— Cow Jones (@CryptoCowJones) November 15, 2019
Bitcoin’s Kumo Cloud BreakoutThe first time the Bitcoin price broke out from the cloud was in January 2013. An 8357 percent price increase followed until we fell below the cloud. The second time, in 2016, a 4633 percent increase ensued.
If we make a projection for the next increase with an upper limit of 8357 percent and a lower limit of 4633 percent, we get a high between $60,000 – $90,000.
There are two bullish indications about the current break:
The projected cloud is positive, meaning the trend has picked up. The Bitcoin price is above both clouds, meaning its rate of increase is faster than the trend.Looking at the daily cloud we can see that the Bitcoin price is trying to break out from a short-term downtrend.
While the Bitcoin price broke out from the wedge, it failed to increase past the resistance of the cloud and is now inside it.
A very positive movement would be a pump out of the cloud followed by the use of the green cloud as support. This would go in the footsteps of the hypotheses laid out in the weekly analysis and suggest that a new market cycle has begun.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of TradingView, Twitter.
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The post Bullish Bitcoin Signal That Preceded Previous Price Increases Identified by Analyst appeared first on BeInCrypto.
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