{"id":1939,"date":"2021-12-16T16:20:44","date_gmt":"2021-12-16T16:20:44","guid":{"rendered":"http:\/\/egrowonline.com\/?p=1939"},"modified":"2021-12-16T16:20:44","modified_gmt":"2021-12-16T16:20:44","slug":"historically-accurate-momentum-indicator-hints-at-possible-bitcoin-breakout-ahead","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=1939","title":{"rendered":"Historically accurate ‘momentum indicator’ hints at possible Bitcoin breakout ahead"},"content":{"rendered":"


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Bitcoin (BTC<\/a>) could see a \u201cmassive bullish move\u201d if a classic trigger from the 2021 bull run repeats this week.<\/p>\n

In a tweet<\/a> on Dec. 16, on-chain analyst Matthew Hyland, known by the Twitter handle Parabolic Matt, drew attention to Bitcoin\u2019s momentum indicator.<\/p>\n

Momentum indicator hints at potential “massive bullish move”<\/h2>\n

While still under $50,000, Bitcoin has already broken out of a long-term downtrend on the momentum indicator, which measures closing prices against those from a period in the past.<\/p>\n

Two such breakouts have occurred this year, and after each one, BTC\/USD went on to see considerable upside.<\/p>\n

\u201cThe previous two times it broke out of a multi-month downtrend this year, a massive bullish move followed,\u201d Hyland wrote as part of comments.<\/p>\n

BTC\/USD vs. momentum indicator annotated chart. Source: Matthew Hyland\/ Twitter<\/em><\/figcaption><\/figure>\n

While not a guarantee of \u201cup only\u201d price action, the momentum data joins a large number of on-chain metrics flashing bull signals<\/a> this month \u2014 a list that keeps growing.<\/p>\n

Hyland is known for his highly optimistic price forecasts, and last month caused a stir<\/a> by predicting that Bitcoin would hit $250,000 in January 2022 while invalidating one of the popular stock-to-flow price models.<\/p>\n

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#Bitcoin<\/a> bottom structure on the RSI and Momentum indicators (daily time frame) look very similar to what occurred in September before the reversal up started<\/p>\n

\u2022Momentum has broken out
\u2022RSI needs a close above resistance to confirm breakout
\u2022Bitcoin price waiting to breakout pic.twitter.com\/XDwiUsSj2U<\/a><\/p>\n

\u2014 Matthew Hyland (@Parabolic_Matt) December 15, 2021<\/a><\/p><\/blockquote>\n

In further analysis, he noted that both the momentum indicator and Bitcoin\u2019s relative strength index (RSI) on daily timeframes are mimicking behavior from September, when the market put in a local bottom before rising to current $69,000 all-time highs.<\/p>\n

Dollar dives post Fed<\/h2>\n

Spot price action was meanwhile quieter on Dec. 15, Bitcoin lingering around $49,000 despite a conspicuous drop in the U.S. dollar.<\/p>\n

Related:\u00a0Bitcoin sheds \u2018dumb money\u2019 as retail buys most BTC since March 2020 crash<\/a><\/em><\/strong><\/p>\n

The U.S. dollar currency index (DXY), which measures USD against a basket of trading partner currencies, reversed its extended bull run last week, with Dec. 1 seeing a pronounced comedown, data from TradingView shows.<\/p>\n

DXY 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Traditionally inversely correlated with BTC, DXY’s drop follows a boost<\/a> for crypto and equities alike courtesy of the Federal Reserve.<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) could see a \u201cmassive bullish move\u201d if a classic trigger from the 2021 bull run repeats this week. In a tweet on Dec. 16, on-chain analyst Matthew Hyland, known by the Twitter handle Parabolic Matt, drew attention to Bitcoin\u2019s momentum indicator. Momentum indicator hints at potential “massive bullish move” While still under $50,000, […]<\/p>\n","protected":false},"author":1,"featured_media":1940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[40],"tags":[1896,1386,50,528,1898,380,1897,1183],"class_list":["post-1939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-accurate","tag-ahead","tag-bitcoin","tag-breakout","tag-hints","tag-historically","tag-indicator","tag-momentum"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2021\/12\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvZmI5OWQ4NmUtZTI4NC00ZDliLWE3NWUtMTcyODBlZDk1YWMwLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1939"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1939\/revisions"}],"predecessor-version":[{"id":1941,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/1939\/revisions\/1941"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/1940"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1939"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}