40% Bitcoin Price Pump to $10,500 Was Not a Trend Reversal: Analyst 14

40% Bitcoin Price Pump to $10,500 Was Not a Trend Reversal: Analyst

Late last month, Bitcoin (BTC) caught traders across the industry with their pants down: in a day’s time, the leading cryptocurrency had pumped by 42%, surging from $7,200 to $10,500 in a jaw-dropping, historical move higher. In fact, that day marked Bitcoin’s fourth-largest daily move… ever, and the largest price jump by percentage since 2011.

While many said that this was the nail in the coffin of bears, this isn’t the case, according to one analyst anyway. Up-and-coming crypto trader Capo of Crypto recently noted that the 42% jump, while bullish in and of itself, isn’t a convincing sign that the bear is over. He remarked that the 42% move validates a series of lower highs and lower lows, indicating a still-bearish trend. That’s not all, the Guppy/Fishnet Indicator is still printing gray bands, implying that the medium-term trend of Bitcoin is still undecided

Bitcoin Ready to Roar… Eventually

While the trend isn’t decisively positive yet, there are signs starting to reappear that show that Bitcoin is ready to resume its grind higher, even though it may not feel like that is right on the horizon.

Popular cryptocurrency trader FilbFilb has opined that by the end of this month or by the beginning of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses. TraderBirb, another analyst, has even gone as far as to say that this cross is one that “will change your life,” referring to a chart which shows that every time this specific golden cross was seen, massive Bitcoin rallies followed.

Aside from this impending golden cross, Bitcoin’s volume profile is purportedly a sign that it has bottomed as is thus preparing to leg higher. The Anthony Pompliano-backed cryptocurrency research boutique Delphi Digital revealed in a recent report that the volumes seen in this market are indicative of an entire market cycle.

More specifically, the market printed signs of weak volume (capitulation) after a strong rally, a short accumulation in and around the bottoming range, then a surge out of accumulation into a potentially new bull phase.

Delphi Digital added in that same report that with the S&P 500 and Dow establishing new all-time highs, they expect Bitcoin to head higher because of the correlation they see between risk U.S. equities and the cryptocurrency.

Photo by Kent Pilcher on Unsplash