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Bitcoin may head higher in the coming sessions based on its price actionâs similarities with a fractal from June 2020.
First spotted by TradingShot, an independent trading signals provider, the fractal boasts about a support level near $9,000 that stood firm between June 25 and July 21 this year. Traders attempted to break below the floor for 26-days straight but failed every time owing to a higher buying sentiment around it.
Meanwhile, the same period saw a so-called âLMACD Squeeze.â
Strong Bitcoin Accumulation
In retrospect, LMACD stands for Logarithmic Moving Average Convergence Divergence, a technical indicator that shows the relationship between two moving averages of an assetâs price. Meanwhile, the term âSqueezeâ points towards a big breakout move, based on Bitcoinâs historical reaction to the growing proximity between Signal Line and MACD output.
The last occurrence of LMACD Squeeze coincided with Bitcoinâs consolidation above the $9,000 level. Later, the cryptocurrency underwent a massive breakout move towards $10,500.
TradingShot noted Bitcoin in a similar upside setup as the cryptocurrency attempted to maintain a price floor above $10,000. At the same time, it logged a similar LMACD Squeeze scenario, leading the chartist to expect a lengthy bull run ahead.
âThat is the perfect example of strong accumulation if you ask me,â said an analyst from TradingShot. âSo if we see something similar this time around, you probably know what it would mean.â
Conflicting Macros
The statement also appeared as BTC/USD struggled to break above a technical price ceiling near $10,400 despite repeated attempts. The pair on Sunday briefly closed above $10,500 only to pare those gains entirely.
The pullback brought BTC/USD back inside the $$10,00-10,400-wide trading range.
Some observers decided to watch macro fundamentals to anticipate Bitcoinâs next moves. Tyler Winklevoss, the co-founder of US-based Gemini crypto exchange, cited the European Central Bankâs monetary policy meeting on Thursday to make a bullish case for the cryptocurrency.
âThe European Central Bankâs refinancing rate is 0% and its deposit rate is -.5%,â he said based on ECBâs head Christina Lagarde remarks. âThis means it is free to borrow money, but actually costs you money to save. This is both a potent recipe for inflation and powerful advertisement for Bitcoin.â
Meanwhile, Kevin Svenson expressed his concerns over a  bearish pullback in the US stock market. The analyst stated that a further correction in the S&P 500 would put Bitcoin en route to lower levels. (Read more: A Bearish Reversal in Stock Market May Bleed Bitcoin)
Bitcoin and the S&P 500 rose in tandem from their mid-March lows, their rallies led by the US Federal Reserveâs relentless bond-buying and lower interest rates.
BTC/USD was trading 13.43 percent lower from its year-to-date top near $12,500. The S&P 500 was down 6.89 percent.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.