The start of the month was particularly shocking for Bitcoin (BTC) for one reason in particular: the opening of the December Candle for the Cryptocurrency Prize triggered a “sell-off” on the “Market God v7” indicator developed by crypto analyst Thies.
According to Thies, the indicator was designed to “eliminate” the emotions from trading, relying instead on algorithm-driven signals.
This was considered bearish as the indicator gave the signal last in April – i. before the move, where the Bitcoin price of five digits dropped to $ 3,150 before a buy signal near bottom level was issued.
However, according to Thies’ latest indicator review, the “sell-signal” has been reversed as the bear has failed to lower the bitcoin price further.
Importantly, Moving Average Convergence Divergence (MACD, a “trend-following momentum indicator that, according to Investopedia, shows the ratio between two moving averages of the price of a security”), remains in a bearish crossover on the one-month Bitcoin chart. Formation.
The last time this happened in May 2018 – after that bitcoin fell from $ 10,000 to $ 3,000 over the next seven months.
Regardless, the disappearance of Thies’ “sell-signal” on the one-month suggests that the bulls are regaining strength at the macro level, probably in anticipation of Bitcoin halving in May 2020.
Bitcoin bulls gain strength
This signal or the absence of it seems to show that Bitcoin investors are optimistic.
Hans Hauge, a senior quantitative researcher with Los Angeles-based krypto fund Ikigai Asset Management, released an extensive Twitter thread on Friday. In it he explains why Bitcoin’s prospects for the coming years are still extremely positive.
First, he looks back on a recent analysis by Deutsche Bank, in which the global banking giant estimates that the number of users of Blockchain Wallet (blockchain.com) could reach over 200 million by 2030 – about six times as many as today. The same report also includes a statement by a Deutsche Bank analyst that Bitcoin Fiat could replace if the problems in the financial system continue.
Second, he jokes that the (former) chief executive of Bitcoin stock exchange and infrastructure company Bakkt is now a reigning US senator.
Finally, he states that “BTC is actually quite close to where it should be” in terms of a model that takes the number of “all Bitcoin transactions as input to a logarithmic linear regression model used “. In this respect, the next weeks and months are guaranteed to be groundbreaking for how BTC will develop next year.