The first bullish technical indicator for Bitcoin since 2017

In recent months, the substantial increase in the daily volume of bitcoin and the rest of the cryptocurrency market has led analysts to suggest that the overall trading activity in the market is rising. While some stated that the minimal impact on the bitcoin price despite the large movements of alternative cryptocurrencies show a small inflow of capital into the crypto market, the general sentiment regarding the asset class has improved.

According to one technical analyst, for the first time since the bull run in late 2017, a technical indicator called Bollinger Bands is holding above the 30 moving average (MA) level, which often signals a positive upside movement. Throughout the past three months, bitcoin has struggled to move out of a tight range from mid-$3,000 to $4,000.

On two occasions wherein bitcoin breached the $4,000 mark, the dominant cryptocurrency retraced fairly quickly back to the $3,800 to $3,900 range. For a breakout above the $4,000 to hold, several technical analysts including DonAlt have emphasized that it is important for the asset to test key resistance levels, like $4,300 and $4,600. The $4,300 level could be crucial in the near-term because as one cryptocurrency trader explained, there are a relatively large number of short contracts stacked up in the $4,200 to $4,300 range. If bitcoin initiates an optimistic price movement above $4,300, it could trigger a short squeeze and fuel its near-term momentum.

Bitcoin Rages Bullish in Technical Indicators For the First Time Since 2017, CCN, Mar 18