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A “massive bullish move” could be the result of the Momentum Indicator moving this week in line with behavior throughout 2021.
Bitcoin (BTC) could see a massive bull run if the classic 2021 bull run repeats this week.
In a tweet on December 16, on-chain analyst Matthew Hyland, aka Twitter Parabolic Matt, drew attention to Bitcoin’s momentum indicator.
Momentum indicator hints at a potential “massive bullish move”
Although Bitcoin is still below $ 50,000, it has already broken out of a long-term downtrend on the momentum indicator, which measures closing prices compared to prices over a period in the past.
This year, there were two such breakthroughs, and after each of them, the BTC / USD rate showed significant growth potential.
“The previous two instances of Bitcoin breaking out of a multi-month downtrend this year have been followed by a powerful bullish move,” Highland wrote.
While this is not a guarantee of a “only up” price movement, momentum data is joining a large number of indicators in the chain showing bullish signals this month – a list that continues to grow.
Highland is known for its very upbeat price predictions, and it caused a stir last month by predicting that Bitcoin would hit $ 250,000 in January 2022.
On further analysis, he noted that both the momentum indicator and Bitcoin’s Relative Strength Index (RSI) on daily timeframes mimic behavior from September, when the market hit a local bottom, before rallying to current all-time highs of $ 69,000.
Dollar falls after the Fed
Meanwhile, the dynamics of spot prices on Thursday were calmer. Bitcoin was worth around $ 49,000 despite a notable drop in the US dollar.
The US Dollar Exchange Rate Index (DXY), which measures the dollar against a basket of trading partners’ currencies, reversed its sustained bullish gains last week and saw a clear decline on Thursday, data from TradingView shows.
The fall in DXY, traditionally inversely proportional to BTC, follows the rise in both cryptocurrencies and stocks thanks to the Federal Reserve.
he is Zaitsev, analyst Freedman Сlub Crypto News
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