Technical Indicator Flashes ‘BUY’ Signal for Bitcoin, Suggests BTC Has Reached Bear Market Bottom
As Bitcoin (BTC) continues to struggle to break above a significant level, with a similar situation plaguing most other assets in the cryptocurrency market, certain chart patterns are keeping hope alive that things may turn around soon.
In fact, the Cycle Channel Oscillator (CCO), which typically indicates the oversold area and market bottom for Bitcoin, has entered the bear market and a “perfect area for DCA BTC,” according to the analysis of the pseudonymous crypto expert Mags published on 27 November.
Speaking of DCA (dollar cost average), the crypto expert referred to the practice, known in both crypto and stock market circles, of continuously investing a small, fixed amount of money, which can lead to better results over time.
According to the chart shared by the analyst, the current Bitcoin bottom could finally cause the price of the flagship decentralized finance (DeFi) asset to make a bullish push, reaching the $17,500 level (and eventually beyond) sometime in 2023.
Furthermore, Mags retweeted an analysis by a financial analyst known as Sethwho explained that the BTC monthly chart “shows that we are in the same accumulation phase as the last major lows,” adding that “we are also at the same monthly MA as the last lows.”
Bitcoin Technical Analysis
Meanwhile, the technical analysis (TA) one-week gauges paint a somewhat different picture, as their summary currently suggests “sell” at 13, as opposed to 4 indicating “buy” and 9 for “neutral.”
This summary is the result of the moving average (MA) standing in the ‘strong sell’ zone at 13 (compared to 1 for both ‘neutral’ and ‘buy’) and interestingly oscillators moving in the opposite direction indicating ‘buy’ of 3, as opposed to 8 for ‘neutral’ and no sell signals.
At press time, Bitcoin was changing hands at a price of $16,244, down 1.71% on the day, but still registering a growth of 1.41% compared to the previous seven days, according to data obtained on November 28.
As such, the maiden crypto token has yet to reach the crucial resistance level of around $16,600, which prominent crypto trading expert Michaël van de Poppe said it needs to regain to form a “candle towards $17.5-18K,” as Finbold reported.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
