Despite a bearish last two months, the latest Bitcoin analysis from crypto trader Parabolic Matt points to an impending bullish reversal. Covered: Bitcoin Indicators Plot Bullish Future Looking At The Bigger Picture RECOMMENDED: BITCOIN AT CRITICAL INFLECTION POINT, WILL BULLS PREVAIL? Bitcoin Indicators Plot Bullish Future The closely followed crypto market analyst Parabolic Matt just […] The post Bitcoin Analysis Flashing Reversal Signal After December Drawdown appeared first on CryptosRus.

Bitcoin Analysis Flashing Reversal Signal After December Drawdown

Despite a bearish last two months, the latest Bitcoin analysis from crypto trader Parabolic Matt points to an impending bullish reversal.

Covered:

  • Bitcoin Indicators Plot Bullish Future
  • Looking At The Bigger Picture

RECOMMENDED: BITCOIN AT CRITICAL INFLECTION POINT, WILL BULLS PREVAIL?

Bitcoin Indicators Plot Bullish Future

The closely followed crypto market analyst Parabolic Matt just dropped off some bullish Bitcoin analysis.

After weeks of bearish price action for Bitcoin, signs of a bottom reversal seem to finally be coming in. During the September/October reversal that took Bitcoin from $40,000 to $69,000, the price, relative strength index (RSI), and momentum indicator all printed consolidation patterns on the daily time frame that historically lead to breakouts. 

Take a look at his analysis – we are seeing similar bullish consolidation patterns now that are all breaking out. 

This is what you want to see if you’re trying to buy low. There’s no guarantee that the current price movements aren’t just a fakeout, but if you’re bullish on Bitcoin, from a technical perspective there may not be a better opportunity to buy than right now. 

Looking back at October, the initial breakout above $42,000 led to a 66% rally for Bitcoin. A similar move from today’s breakout could send the BTC price straight to $80,000 from its current price tag of $48,807.

In a bull market, it’s typically a very poor decision to fade a macro higher low (HL), which we are currently seeing with Bitcoin right now.

RECOMMENDED: THE TOP 10 BITCOIN STORIES OF 2021

Looking At The Bigger Picture

This morning, Parabolic Matt also highlighted some on-chain data from crypto analyst Plan C that shows what long-term holders think about the current state of the market.

According to the chart, long-term holders are ready for the next leg higher. You can see that since Bitcoin’s initial resurrection from the summer bear cycle, long-term holder NUPL has bounced in near-perfect alignment with the Bitcoin price. Unless you think you’re smarter than the market, the current NUPL levels are telling us that this time is probably no different.

It is crucial to remind ourselves, however, that while Bitcoin still has plenty of room to grow, as indicated, the crypto market bull cycle has been well underway for almost two years now. Zooming out a bit further, market data analyst Benjamin Cowen has created one of my favorite charts to understand where we are in the context of this cycle.

Measuring from the very bottom of each cycle, a much clearer story is being told. Bitcoin adoption has never really slowed down, it’s just that it takes more and more money to push the asset higher as the market cap grows. This basically tells us that Bitcoin’s cycles are lengthening and experiencing diminishing returns. 

If we are to assume that this cycle should be no different than the rest, then we can expect to see further price appreciation well into 2022 before finding a top.

***For more content from Parabolic_Matt go here***

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