{"id":367523,"date":"2019-01-08T01:00:45","date_gmt":"2019-01-08T01:00:45","guid":{"rendered":"https:\/\/ktsl888.com\/?p=367523"},"modified":"2019-01-07T19:22:11","modified_gmt":"2019-01-07T19:22:11","slug":"bitcoin-could-be-nearing-bull-territory-as-technical-indicator-turns-positive","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-could-be-nearing-bull-territory-as-technical-indicator-turns-positive\/","title":{"rendered":"Bitcoin Could be Nearing Bull Territory as Technical Indicator Turns Positive"},"content":{"rendered":"
Ever since Bitcoin touched the low-$3,000 region in mid-December, its price has been gradually increasing and just yesterday broke above the $4,000 price level for the first time in a couple of weeks.<\/p>\n
Bitcoin\u2019s relatively positive price action since it set its 2018 low around $3,200 has led one widely viewed technical indicator to turn positive for the first time in months, which could signal that increased buying pressure is right around the corner.<\/p>\n
Per a recent report<\/a>, a commonly used technical indicator called the Directional Movement Index (DMI) suggests that Bitcoin could see some price gains in the coming days or weeks, with the indicator being based on<\/a>\u00a0buying and selling trends with historical accuracy.<\/p>\n The DMI, which separates price movements into a positive directional and negative directional movement category, indicates the relative strength of the asset\u2019s buyers and sellers and bases the results off of data regarding the strength of the bulls versus the bears.<\/p>\n With regards to Bitcoin<\/a>, the DMI flipped positive for the first time in several months, which means that Bitcoin could see a large, albeit temporary, surge in buying pressure.<\/p>\n The report explains that the DMI is currently showing that Bitcoin\u2019s buying pressure is increasing, while its recent selling pressure \u2013 which was ranked as being \u201cvery strong\u201d \u2013 is subsiding. It is important to note that this indicator is most commonly used for short-term trading, and typically doesn\u2019t offer much insight into long-term trends.<\/p>\n Mati Greenspan, senior market analyst at eToro, discussed the current technical indicators in the report, noting that although technical analysis is showing growing strength for Bitcoin and the crypto markets in general, its price must break above $5,000 in order for a strong bullish case to be made for the long-term.<\/p>\n \u201cIn technical analysis this makes these levels very strong. But I think only once we see a strong break above 5,000, 6,000, if we get above 7,500, that\u2019s when people start to turn really bullish,\u201d Greenspan explained.<\/p><\/blockquote>\n \u00a0<\/strong>Historically, Bitcoin leads market trends<\/a>, with the altcoin markets rarely bucking its trend and moving in their own direction.<\/p>\n Currently, most altcoins are experiencing a relatively mixed trading session as investors wait to see if Bitcoin is able to maintain above $4,000 for an extended period of time. At the time of writing, Ethereum and Bitcoin Cash are both trading down 3%, while XRP is trading up marginally and Stellar<\/a>\u00a0is trading up just under 3%.<\/p>\n Apart from events influencing individual altcoin prices, like Ethereum\u2019s upcoming Constantinople fork that is expected to occur around January 16th, the markets will likely continue to follow Bitcoin\u2019s lead.<\/p>\nWhat Bitcoin\u2019s Price Action Could Mean for the Crypto Markets<\/strong><\/h2>\n