- Bitcoin’s 50- and 100-candle moving averages on the three-day chart look set to produce a bullish crossover – a sign of bull market momentum.
- Bitcoin had broken into a long run bull market following the confirmation of the previous bull cross on Oct. 16, 2015.
- This time, BTC has already rallied more than 180 percent ahead of the bull cross. As a result, we may not see a big move to the higher side immediately following the confirmation of the bull cross.
- Prices could rise to $8,400 in the next 24 hours, having witnessed a bearish channel breakout on Wednesday. A break below key 4-hour chart support at $7,910 would weaken the case for a rise to $8,400.
A long-term bitcoin (BTC) price indicator is about to turn bullish for the first time in nearly four years.
The three-day chart 50-candle moving average (MA), currently located at $5,182, is trending north and could soon cross above the 100-candle at $5,289, confirming a bullish crossover – the first since October 2015, according to Bitstamp data.
A bullish crossover, as the same suggests, is a strong indicator of bull market momentum, according to technical analysis theory.
In reality, however, both bullish and bearish crossovers tend to lag prices. After all, the MA studies are based on historical data.
Even so, the upcoming bullish crossover of the three-day chart 50- and 100-candle MAs warrants attention. This is due to the fact that bitcoin broke into a 2.3-year long uptrend with the bullish crossover of the said averages in October 2015.
3-day chart (2015)
As can be seen,