Bitcoin is about to print a key buy signal that was last seen in July despite a weak short-term outlook

Bitcoin has seen a strong rally over the past few days following weeks of consolidation. The top cryptocurrency has risen around $ 1,000 from last week’s lows near $ 10,400.

This recovery has allowed the technical case to continue to rise. One analyst recently noted that Bitcoin is about to form an important buy signal last seen in late July, amid a sharp uptrend that has taken the asset to $ 12,500. If history repeats itself, Bitcoin will continue to appreciate in the coming days and weeks.

Ichimoku clouds flashing a rising signal

Analyst “Josh Olszewicz” recently shared a chart that shows Bitcoin’s one-day Ichimoku Cloud is about to form a TK Cross, when the blue line crosses above the red line. The Ichimoku Cloud is a popular technical indicator that shows key technical levels and overall market trends.

The last time this bullish signal was seen for Bitcoin was at the end of July, amid a vertical rise from $ 9,000 to $ 11,000. BTC continues to rise after this signal forms, suggesting that the cryptocurrency will do so now.

Signals can take several days to confirm, depending on how price action played out in the coming days for Bitcoin.

Bitcoin’s short-term outlook looks weak

While Bitcoin is facing an important buy signal, the short-term outlook is weak.

Trader “CryptoHamster” explains that there are quite a few trends that show a market slump in Bitcoin price will take place in the coming days.

The chart shows that Bitcoin has formed a recent “Sell 9” candle according to TD Sequential, indicating an imminent bearish reversal. He added that Bitcoin has formed major bearish divergences on its 4-hour chart. Divergence has formed between Bitcoin price with RSI and MACD over 4 hours.

Disclaimer: This is not investment advice. Investors should learn carefully before making a decision. We are not responsible for your investment decisions.

Leave a Reply