After seven months of stagnation, the price of Bitcoin (BTC) has turned bullish, thus indicating an obvious change in trend within the market. During the three days, the three-day price indicator chart showed the crossing of the 5-candle exponential moving average (EMA) with the 10-candle EMA below it.
In fact, this was the first definite bullish crossover that took place since the 17th of July last year. During that time, BTC traded higher than $7300 while a sudden increase to an $8400-high on the 24th of July followed the crossover. Moving average crossovers indicate sharp changes in momentum, and once there is a cross between the short-term moving average and the long-term average coming from below, then a bearish-to-bullish change in trend is inevitable. As of Feb. 21, BTC is currently trading at $3894 with a $3990-high earlier that day.
Testing More Local Highs
Bitcoin could possibly test its $4200-highs in the near term. This was the highest in December. With a decisive-looking crossover and with both EMAs going north in terms of trend, the trend from bearish to bullish is validated.
The 3-day chart price indicator showed decisive bullish crossover with BTC’s final three-day candle closing at $3936, indicating a triangle breakout. The message is still the same – a bearish-to-bullish trend. As the candle closed far above $3711, then the bullish reversal is certain.
With the 4-hour chart, the long upper shadows on which multiple candles are attached signaled maximum bullish point near $4000. However, the relative strength index (RSI) on the hourly chart became bearish below 50.00. This could mean that BTC could touch $3800-low before a rally that should reach $4236. Nonetheless, the 50-hour MA indicates that the dip to $3800 would not last long at all.