Bitcoin: technical indicators are calling for purchase

Bitcoin continues to grind higher, and on Monday the flagship cryptocurrency hit its highest level in 2019. Many investors are stuck in the past looking at the wild volatility brought on by excessive speculation, and ignoring that right here right now, the Bitcoin price is showing maturity and stability – and could be primed for a major boom.

Bloomberg reported that a popular technical indicator is now screaming buy after the last signal it generated prompted a 17% rally. If BTC/USD was a traditional currency pair, people would be going wild over how bullish the technical picture looks. We are over the 50-day and 100-day moving averages, with the latter providing buying support.

Another harbinger of bullish momentum is the speculation that is once again stirring in the smaller cryptocurrencies. Dash jumped 31% higher, Monero 10% higher, and an incredible 50% gain in Tezos have all been signs of hot money returning to markets. And why shouldn’t it? Bitcoin is looking exceptionally stable, and this will be encouraging investors in the more volatile altcoins that they don’t have to worry so much about Bitcoin cratering and its smaller competitors with it.

Back these fundamentals against the technical picture and the purity of trading Bitcoin is evident. The charts are beautifully representative of what is going on. There has been a lot of good news, and the price is responding accordingly. Some technical confirmation of this would be the cherry on the cake. Naturally, Bitcoin is still an illiquid asset, so significant dips in price are always possible, but it would appear that we could be on the cusp of a major breakout. There certainly isn’t much in the way on the charts to stop the price climbing back up towards the $5,000 handle.

Bitcoin Price: Technical Flags Scream ‘Buy!’ as Market Nears Key Level, CCN, Apr 02

Source: FxPro