Bitcoin has been moving impressively over the past few weeks and has passed resistance after resistance despite a difficult macroeconomic background.
Impressively, Bitcoin continues to create new local summits and keeps its price above key support levels. The extremely positive technical signs of the leading cryptocurrency allowed it to form a separate combination.
Nunya Bizniz, a Bitcoin graphics expert and analyst, observed that the signal that preceded Bitcoin’s most important rallies was re-detected.
Bitcoin Rally Potential
The value of Bitcoin is largely determined by the network effect. BTC has been trading parabolically for a long time, suggesting that the value of a product or service is directly related to the number of consumers on an exponential scale.
Unlike the slow and stable price movement seen in traditional asset classes such as stocks and bonds, Bitcoin history is full of parabolic rallies and parabolic crashes. Based on his observations, Nunya Bizniz made this Parabolic Stop-Run Indicator (PSAR) a natural fit to analyze Bitcoin.
Price has risen for a few weeks and PSAR has now flipped to support.
There have been six other similar occurrences, all of which lead to substantial upside.
Can this be interpreted any other way than bullish? pic.twitter.com/7rdoVQ4BMt
— Nunya Bizniz (@Pladizow) May 1, 2020
Looking at the chart shown above, the analyst explained that six times after this indicator appeared in the past five years, Bitcoin sees “significant growth potential”.
Similarly, PSAR marked a 2000% rally in advance, marking the local highs and continuity of the rise in 2017. If history recurs, Bitcoin will fire up again in the coming weeks. Emphasizing how strong this sign is, can Bizniz say, “Can this indicator be interpreted other than ascension?” asked.
Other Taurus Signs
However, the rise in PSAR is just an indication that Bitcoin may soon benefit from a longer term uptrend.
The strong recovery of Bitcoin in April led the cryptocurrency’s monthly candle to close a significant level of Ichimoku Cloud on a monthly chart. This formation, seen in 2016, increased the price of Bitcoin from $ 500 to $ 20,000 in 20 months, leading to a 4000% rally.
In addition, a cryptocurrency trader stated that Bitcoin was leaving a recently rising wedge. Similarly, this formation caused a rally that increased the price of Bitcoin from $ 4,000 to $ 14,000 in 2019.