Categories: Bitcoin Latest News

Why This Bitcoin Indicator Points To Bullish Double Bottom

Bitcoin continues to push to the upside closing several daily candles on the green, positively impacting the crypto market. At the same time, the benchmark cryptocurrency trends upwards, and the general sentiment shifts into greed territory for the first time since May 2022. 

At the time of writing, Bitcoin (BTC) trades at $20,850 with a 1% profit in the last 24 hours and a 9% profit in the previous week, respectively. Ethereum (ETH) and Dogecoin (DOGE) are the best performers in the top 10 by market cap on similar timeframes. 

BTC’s price trends to the upside on the 4-hour chart. Source: BTCUSDT Tradingview

Bitcoin Rally Likely To Continue?

Bitcoin and the crypto market displayed a high correlation with traditional finances. However, digital assets have been moving against the trend over the past few days. 

While Amazon, Netflix, Apple, Meta, and other big tech companies tanked due to low earnings, Bitcoin broke above critical resistance at $20,500. In that sense, BTC and the crypto market closed in the green with the weekend approaching. 

With traditional markets closed, cryptocurrencies are free to score more profits. The bullish momentum extended on traders’ disbelief and because of Dogecoin and Ethereum’s push to the upside. 

The king of the meme coins rallied this Friday after Elon Musk confirmed the acquisition of the social media platform Twitter. The bullish price action in the crypto market led many traders to open short positions, fueling any higher upside trend. 

When highly leveraged positions are liquidated, the market can continue the trend. This status quo will likely persist over the weekend but might face headwinds during the week. According to crypto analyst Justin Bennett:

That strong close to the week from equities is probably reason enough for #crypto to pump this weekend. Throw in the massive $BTC short liquidations above $21k, and you have another reason. I’m less optimistic about Monday though given where equities closed on Friday (…). Shorts are still piling in, and there are still a ton of liquidations above these highs. This pump most likely isn’t done yet.

If traditional markets rebound from last Friday’s levels, Bitcoin and the company will follow. A pseudonym trader pointed to the On-Balance-Volume (OBV) indicator, a metric used to measure market momentum. The metric formed a double bottom and resumed its uptrend, hinting further appreciation. 

#Bitcoin – OBV going strong after finding a double bottom. The true bottom indicator. pic.twitter.com/s6JgTqjIeT

— IncomeSharks (@IncomeSharks) October 29, 2022 

Bitcoin continues to push to the upside closing several daily candles on the green, positively impacting the crypto market. At the same time, the benchmark cryptocurrency trends upwards, and the general sentiment shifts into greed territory for the first time since May 2022. 

Related Reading: Bitcoin Reclaims $20,500; Here Are The Levels You Should Pay Attention To

At the time of writing, Bitcoin (BTC) trades at $20,850 with a 1% profit in the last 24 hours and a 9% profit in the previous week, respectively. Ethereum (ETH) and Dogecoin (DOGE) are the best performers in the top 10 by market cap on similar timeframes. 

BTC’s price trends to the upside on the 4-hour chart. Source: BTCUSDT Tradingview

Bitcoin and the crypto market displayed a high correlation with traditional finances. However, digital assets have been moving against the trend over the past few days. 

While Amazon, Netflix, Apple, Meta, and other big tech companies tanked due to low earnings, Bitcoin broke above critical resistance at $20,500. In that sense, BTC and the crypto market closed in the green with the weekend approaching. 

With traditional markets closed, cryptocurrencies are free to score more profits. The bullish momentum extended on traders’ disbelief and because of Dogecoin and Ethereum’s push to the upside. 

The king of the meme coins rallied this Friday after Elon Musk confirmed the acquisition of the social media platform Twitter. The bullish price action in the crypto market led many traders to open short positions, fueling any higher upside trend. 

When highly leveraged positions are liquidated, the market can continue the trend. This status quo will likely persist over the weekend but might face headwinds during the week. According to crypto analyst Justin Bennett:

That strong close to the week from equities is probably reason enough for #crypto to pump this weekend. Throw in the massive $BTC short liquidations above $21k, and you have another reason. I’m less optimistic about Monday though given where equities closed on Friday (…). Shorts are still piling in, and there are still a ton of liquidations above these highs. This pump most likely isn’t done yet.

Related Reading: Bitcoin Bearish Signal: Exchanges Receiving Large Deposits

If traditional markets rebound from last Friday’s levels, Bitcoin and the company will follow. A pseudonym trader pointed to the On-Balance-Volume (OBV) indicator, a metric used to measure market momentum. The metric formed a double bottom and resumed its uptrend, hinting further appreciation. 

Tags: bitcoinbtcBTCUSDT

NewsBTCRead More

Recent Posts

Crypto Daybook Americas: It’s Glass Half Full Despite Record Short Bitcoin ETF Volume

By Omkar Godbole (All times ET unless indicated otherwise) You know how it feels when…

3 hours ago

Has Bitcoin Reached Its Cycle Top? Insights From Leading Analysts

Bitcoin experienced extreme volatility yesterday after reaching a new all-time high of $104,088 on Wednesday.…

3 hours ago

Ethereum To Pull A BTC 2021-Like Rally? Analyst Shares Massive Prediction

As Bitcoin finally soars above the long-awaited $100,000 milestone, Ethereum (ETH) attempts to break out…

6 hours ago

U.S. Ether ETFs Post Record Inflows, Bitcoin ETFs Add Most in Two Weeks

Net inflows into U.S. spot ether (<a href="https://www.coindesk.com/price/ethereum/ " target="_blank">ETH</a>) exchange-traded funds (ETFs) have picked…

7 hours ago

Bitcoin Sets New ATH Above $104,000, Yet Investors Don’t Want To Sell

Bitcoin has set a new all-time high (ATH) beyond the $104,000 mark during the past…

7 hours ago

As Bitcoin Trades Above $100K—Analysts Reveal What Could Be Next

Bitcoin has achieved a major milestone, trading at six-figure levels for the first time since…

9 hours ago