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  • The short-term moving average over 50 periods of Bitcoin is close to the long-term moving average over 100 periods of the weekly chart, alluding to a potential formation of "golden cross" for the first time in three and a half years.
  • In the short term, however, the total weekly volume declined from one period to the next, with indecision continuing to weigh on the market.
  • The price action lies between the moving averages of 100 days and 200 days. The next major move in one or the other direction is likely to determine the trend bias in the future, if a firm close above or below these averages is confirmed.

Bitcoin (BTC) is expected to produce a long-term bullish signal that has not been seen for 3.5 years.

According to Bitstamp data, the 50 and 100 period MAs moved closer to the weekly chart after BTC rebounded from USD 7,293 to USD 10,350.

A 50-period MA crossing the slower MA of the 100 period, called the Golden Cross, usually suggests a strong change in trend and can confirm a bullish bias for long-term vision.

The last time the crossover occurred on the weekly chart was in May 2016, when the price of BTC began to rise, rising from 438 USD to almost 20,000 USD in December 2017, an increase of 4,800%. If ADs continue to converge as at present, the crossover seems likely towards the end of December or the beginning of 2020, but it is still too early for a specific call.

Weekly chart

Such comparisons with previous years carry an inherent risk as market conditions have changed considerably. However, it is interesting to look for further confirmation of the long-term trend, as half of BTC's awards for miners in May 2020 are likely to spur a host of market activities as we approach the downturn. 'offer.

The total weekly volume has decreased compared to two weeks ago, a sign of market indecision on a relatively stagnant price, while the RSI is only trending upwards above 52.7 (the neutral being at 50).

However, if both lines converged and crossed each other bullish, this would convincingly indicate that the 2019 inversion rally has legs. With an important fundamental event for BTC, it is important to take note of bullish signals over longer periods.

More immediately, the daily chart suggests a market equilibrium, as prices have been largely stuck in the $ 650 range for almost two weeks.

Daily chart

The price BTC price was taken between centennial AM and 200 days for 12 days.

In general, when prices are above the 200-day MA, the long-term trend can be considered bullish. Conversely, if prices are below the 100 day MA, this is an indication of medium term downtrend conditions (30 to 60 days).

The current scenario highlights the undecided sentiment felt on the market. Repeated failure beyond the 100-day limit could open the door to $ 8,800 in the short term, as noted earlier.

The indecision will continue until a firm closure greater than $ 9,573 (100-day MA) or less than $ 9,180 (200-day MA) occurs with a conviction, up to That we can expect that she continues.

Disclosure: The author does not hold any cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; TradingView charts

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