A crypto influencer whose stock-to-flow analysis of Bitcoin made it all the way to prime time on CNBC says BTC’s chart looks similar to the early days of its last parabolic bull run.
PlanB says Bitcoin’s Relative Strength Index (RSI), which is used to gauge the momentum of a given asset or market, mirrors its movements back in mid-2016, before Bitcoin’s eventual rise to around $20,000.
“Everything is possible of course, but I think these RSI moves from <50 to >90 are longer-term trends (that do not break easily) with a lot of noise around it.”
#bitcoin still looking strong … feels like mid 2016 pic.twitter.com/lddKSEETye
— PlanB (@100trillionUSD) August 29, 2019
Analyst and Adaptive Capital partner Willy Woo says BTC needed a healthy pullback, and the fact that Bitcoin has brushed with its 128-day moving average is a positive.
“Kissing the 128d MA is a very good sign. It was overheated till this. People familiar with BTC’s historic personality know that the 128d line needs to be touched many times during a bull market to stay grounded. They present good buying opportunities.”
Analyst Tone Vays, who has been largely bearish on Bitcoin’s trajectory in 2019, says BTC is at a critical juncture.
Vays says that overall, BTC is holding on strong support, but warns BTC is currently in a bearish overall trend.
“This is a really tough spot for Bitcoin. This $9,400 to $9,500 zone has great support. The setup trendline, if we pull back up to $9,600, the setup trendline has not been broken. The setup trendline is only broken at the close of candle basis. The 128-day moving average, which has been very critical to Bitcoin in the past, may or may not still be so today…
There are bearish forces here trying to take this thing down to $8,000. There is also good enough support. If you missed the short trade here, today is not the time to short. Today is also not the time to go long.”
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