Bitcoin Price: Technical Flags Scream ‘Buy!’ as Market Nears Key Level

The Bitcoin price is flashing a major buy signal. | Source: Shutterstock

Bitcoin continues to grind higher, and on Monday the flagship cryptocurrency hit its highest level in 2019. Many investors are stuck in the past looking at the wild volatility brought on by excessive speculation, and ignoring that right here right now, the Bitcoin price is showing maturity and stability – and could be primed for a major boom.

Bloomberg reported that a popular technical indicator is now screaming buy after the last signal it generated prompted a 17% rally.

bitcoin price

LOW BITCOIN VOLATILITY IS GREAT FOR ALTCOINS

If BTC/USD was a traditional currency pair, people would be going wild over how bullish the technical picture looks. We are over the 50-day and 100-day moving averages, with the latter providing buying support.

Another harbinger of bullish momentum is the speculation that is once again stirring in the smaller cryptocurrencies. Dash jumped 31% higher, Monero 10% higher, and an incredible 50% gain in Tezos have all been signs of hot money returning to markets.

And why shouldn’t it? Bitcoin is looking exceptionally stable, and this will be encouraging investors in the more volatile altcoins that they don’t have to worry so much about Bitcoin cratering and its smaller competitors with it.

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Bloomberg Crypto

Bitcoin is 📈 https://bloom.bg/2U6MLCF 

GOOGLE SEARCHES A POSSIBLE CAUSE OF DROPPING VOLATILITY

The more people talk about Bitcoin losing Google search interest, the more we can assume that speculation is also dropping – a concept affirmed by the fact that volatility is at a 30-day low. Calm trading conditions are precisely how things should be, in a happy, healthy cryptocurrency market. Developers have made these coins to be used as an alternative medium of exchange, not just to make people with a passing interest a quick buck. Attention is now growing organically, industry investment is steady, and the maturation process is in full swing.

Just look at the Lyft IPO if you want some short-term evidence of how excessive media coverage generates bubbly speculation.

BITCOIN FUNDAMENTALS AND TECHNICALS ARE STARTING TO ALIGN

Back these fundamentals against the technical picture and the purity of trading Bitcoin is evident. The charts are beautifully representative of what is going on. There has been a lot of good news, and the price is responding accordingly. Some technical confirmation of this would be the cherry on the cake.

Naturally, Bitcoin is still an illiquid asset, so significant dips in price are always possible, but it would appear that we could be on the cusp of a major breakout. There certainly isn’t much in the way on the charts to stop the price climbing back up towards the $5,000 handle.

PRICE STABILITY TRANSLATES INTO RISING INSTITUTIONAL CONFIDENCE

Institutional investors are some of the most risk-averse on the planet. You would be too if you were protecting assets people had worked for 50 years to accumulate in a pension fund. With volatility tracking closely to US indexes like the S&P 500, fears of massive price swings are falling. Because of this, It’s prudent to consider a very boring Bitcoin outlook could precede an equally bullish one.

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About Howard Mahere

I'm a Bitcoin/Cryptocurrency enthusiast ; motivator; author of "AN IMMIGRANT WITH A PLAN" and a John C Maxwell certified speaker . Happily married to Emely and a father to one son and two daughters. My greatest joy comes from inspiring others to maximize their potential. I feel fulfilled when I bring hope to the hopeless and encouragement to the discouraged. The truth is, we each have a past, and it's either our prison, our excuse OR our springboard to a brighter future. The choice is yours but as for me, I made up my mind a long time ago to use my dysfunctional tough childhood as a stepping stone . The late Zig Ziglar used to say "It's not what happens to you that determines how far you will go in life, it is how you handle what happens to you." This is my story and I am sticking to it!
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