Feb 06 , 2019
For the past several days, Bitcoin bulls have been defending $4,000, which is increasingly becoming a level of support for the cryptocurrency. Despite this, it has not yet built up enough buying pressure to propel its price beyond the low-$4,000 range.
Now, one widely used technical indicator is signaling that Bitcoin could be reaching an inflection point that will lead to a massive price movement.
Bitcoin on the Brink of a Large Move
A recent report from Bloomberg details that Bitcoin is close to making a large price move based on the widely used GTI VERA Bands Indicator, which uses trend data over any time frame to give investors insight into which direction an asset is poised to move. This indicator also claims that Bitcoin is currently in its longest buying trend since September.
This indicator is now seeing a drastic narrowing of its upper and lower bands, which typically precedes a large price swing. This, coupled with the recent buying trend that Bitcoin has been in, may signal that it will see a significant increase in buying volume in the near future.
The DMI separates price movements into either a positive or negative directional movement category, which is used by traders to quantify the strength of a particular trend. Earlier this week, the DMI flipped positive for Bitcoin for the first time in several months, signaling that Bitcoin’s “very strong” selling pressure had largely subsided, and buying volume is gradually increasing.