Indicators Suggest Biggest Bitcoin Buy Signal Since April 2020

gold bitcoin standing on financial graphs for cryp 7ENKGDY 3 scaled

As the bull rally continues, some Bitcoin technical indicators may suggest the biggest BTC buy signal since April 2020 is here.

Bitcoin Closes Above 21 Week MA And 200 Day MA

As pointed out by a CryptoQuant post, the cryptocurrency has made a weekly close above the 21-week and 200-day moving averages (MAs).

The Bitcoin moving average is a method used to smooth out the price data by taking the average price over a specific period of time.

For the 21-week MA, data from the past 21 weeks is used, while for the 200-day MA, prices from the last 200 days are used.

This method “smooths out” the price curve in the sense that it eliminates the many small up-down fluctuations of the price that aren’t relevant to long-term analysis. This results in a easier to look at curve without any sudden spikes.

Related Reading | By The Numbers: What $10 In Bitcoin Each Day Would Net Investors

Now, here is a chart that shows how the current BTC price stands against these two indicators:

Bitcoin 21-week, 200-day MA

BTC price finishes above the 21-week and 200-day MAs | Source: CryptoQuant

As the above chart shows, Bitcoin’s price has closed above the two indicators, flashing a buy signal not seen since April 2020.

The current price trend might also suggest that the coin is following the “Wyckoff Accumulation” pattern. In short, the Wyckoff Accumulation curve forms when Bitcoin enters a period of consolidation in a trading range.

Right now, Bitcoin seems to be in Phase D of the pattern, which is the last one with price moving up and down within a range. If the pattern truly holds, BTC might soon test $50k after a bit more consolidation as it enters Phase E.

Another indicator, the spot exchange netflow, seems to be showing sharp negative spikes right now. The netflow metric curve shows the net amount of BTC entering or exiting exchanges.

Related Reading | Family That Went “All-In” On Bitcoin At $900 Stores Fortune On Four Continents

A positive value means more inflows, while a negative value implies more outflows. The below chart points out the relationship between these spikes and BTC price movement during the weekend.

Bitcoin Netflow

The negative spikes correlate with the an upwards price trend | Source: CryptoQuant

BTC Price

At the time of writing, Bitcoin’s price is around $47k, up 4% in the last 7 days. Over the past month, the value of the crypto has increased by almost 50%.

Here is a chart showcasing the trends in the price of the coin over the last three months:

Bitcoin Price Chart

BTC continues to rally up | Source: BTCUSD on TradingView

Bitcoin’s price seems to have slowed down a little as the coin bounces back and forth between the $47k and $45k range. However, if the indicators mentioned above are anything to go by, signs seem to be bullish for BTC.

Nonetheless, nothing is clear at the moment and the crypto could very well take a bearish turn instead.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 65,073.44
ethereum
Ethereum (ETH) $ 3,168.94
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 572.52
solana
Solana (SOL) $ 150.57
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,165.40
xrp
XRP (XRP) $ 0.526700
dogecoin
Dogecoin (DOGE) $ 0.162726
the-open-network
Toncoin (TON) $ 6.21
cardano
Cardano (ADA) $ 0.505157
shiba-inu
Shiba Inu (SHIB) $ 0.000027
avalanche-2
Avalanche (AVAX) $ 38.06
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,128.45
bitcoin-cash
Bitcoin Cash (BCH) $ 510.52
polkadot
Polkadot (DOT) $ 7.19
tron
TRON (TRX) $ 0.111032
chainlink
Chainlink (LINK) $ 14.92
internet-computer
Internet Computer (ICP) $ 15.68
matic-network
Polygon (MATIC) $ 0.734031
near
NEAR Protocol (NEAR) $ 6.30
litecoin
Litecoin (LTC) $ 84.82
uniswap
Uniswap (UNI) $ 7.83
leo-token
LEO Token (LEO) $ 5.76
dai
Dai (DAI) $ 1.00
aptos
Aptos (APT) $ 10.09
ethereum-classic
Ethereum Classic (ETC) $ 28.05
blockstack
Stacks (STX) $ 2.81
mantle
Mantle (MNT) $ 1.22
filecoin
Filecoin (FIL) $ 6.67
first-digital-usd
First Digital USD (FDUSD) $ 1.00
render-token
Render (RNDR) $ 9.17
crypto-com-chain
Cronos (CRO) $ 0.131212
cosmos
Cosmos Hub (ATOM) $ 8.62
okb
OKB (OKB) $ 55.67
stellar
Stellar (XLM) $ 0.115528
arbitrum
Arbitrum (ARB) $ 1.21
immutable-x
Immutable (IMX) $ 2.20
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,194.23
bittensor
Bittensor (TAO) $ 479.68
hedera-hashgraph
Hedera (HBAR) $ 0.088517
dogwifcoin
dogwifhat (WIF) $ 3.09
vechain
VeChain (VET) $ 0.042072
maker
Maker (MKR) $ 3,126.74
kaspa
Kaspa (KAS) $ 0.120545
the-graph
The Graph (GRT) $ 0.289669
fetch-ai
Fetch.ai (FET) $ 2.53
injective-protocol
Injective (INJ) $ 29.29
optimism
Optimism (OP) $ 2.50
pepe
Pepe (PEPE) $ 0.000006