The crypto markets have dropped slightly today after tepidly climbing higher over the past week. Despite this, Bitcoin (BTC) has been able to firmly establish its position within the $5,000 region and has not incurred any significant selling pressure after climbing towards $5,300.
Although many analysts are currently looking towards freshly formed levels of support and resistance for where BTC is heading next, one technical indicator may signal that the cryptocurrency is on the verge of another bull run.
Analyst: Bitcoin (BTC) a Good Buy Between $4,900 and $5,150
At the time of writing Bitcoin is trading down less than 1% at its current price of just below $5,300. BTC is down slightly from its daily highs of $5,360, but did not incur any significant selling volume after nearing $5,400, which has historically proven to be a strong level of resistance for the cryptocurrency.
It now appears that Bitcoin is caught in a newly formed trading range between approximately $5,000 and $5,400, with its support level first being formed when BTC treated $5,000 as a level of strong support on April 11th.
Flood, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is looking towards the $4,900 to $5,150 price range as an area in which he will buy more Bitcoin.
“I’m a buyer from 5150 to 4900. That is all,” he concisely noted.
I’m a buyer from 5150 to 4900. That is all.$BTC pic.twitter.com/xu3cZS7Gfe
— Flood [BitMEX] (@ThinkingUSD) April 20, 2019
Because Bitcoin has been unable to break above the upper boundary of the aforementioned trading range, it is probable that it will revisit the lower-$5,000 region in the near-future.
BTC May Be on The Verge of a Massive Bull Run
Bitcoin’s relative strength index (RSI) – which is an important technical indicator that many analysts use to gain insight into whether or not an asset is overbought or oversold – is nearing a level that has historically marked the start of previous bull runs when broken above.
Cow Jones, a cryptocurrency trader on Twitter, discussed this in a recent tweet, pointing towards Bitcoin’s historical RSI action as evidence for why this level could signal an imminent bull run.
“Personally don’t use RSI much. However, this is an interesting fork in the road. Past bull market began with RSI above the boxed range,” he explained.
Personally don’t use RSI much. However, this is an interesting fork in the road.
Past bull market began with RSI above the boxed range.
Credit to @TrueCrypto28 for bringing this to my attention many months ago. pic.twitter.com/GfMLKAzzDg
— Cow Jones (@CryptoCowJones) April 21, 2019
As a relatively quiet weekend trading session wraps up and a fresh week begins, trader and investors alike will likely gain greater insight into where the crypto markets are heading next.
Featured image from Shutterstock.
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