A peculiar formation on the long timeline charts signals an indifferent market as bulls and bears struggle for ultimate control of the market. In what is a first for weekly BTC/USD charts, the candle price closed below the 50-day Moving Average (MA) before seeing the following week’s candle close above the line at $7,400, forming a rather rare set up for traders.
Are Bulls Ready to Take Over the Bears?
Looking at the weekly charts on BTC/USD, the price of Bitcoin looks lively following a green candle closing above the 50MA showing a possible market capture by the bulls. Despite the week starting Dec. 2 recording a red candle, bulls look keen to take on the bearish movement in the market.
Another first for BTC.
BTC has never had a weekly close beneath the 50ma, immediately followed by a close above it.
Interpretation: Bulls beat bears, Plus Token Ponzi selling exhaustion, bear trap, temporary consolidation prior to further downside, other? pic.twitter.com/0gkWnhgPfM
— Nunya Bizniz (@Pladizow) December 2, 2019
According to crypto trader, Nunya Bizniz, the close above the 50MA is nothing but a bullish signal showing a bear trap forming as sellers’ pressure gets exhausted since the Oct. 25 bullish run.
However, the bullish case for the pioneer cryptocurrency is far from being a sure bet as another trader pointed out in reply to Nunyaz. According to the trader, the diverse indicators currently showing on charts using different parameters, is a call to show a possible move in any direction for BTC/USD.
So far you have found kinds of support lines, such as CME 200dma, 61.8% fib retrace, AVWMP since 3K, 100wma, 50wma, long trend line, etc. They didn't show much strength however. MA tells the past, not the future. They even give converse singals according to the parameters. pic.twitter.com/wXTUYRLEnN
— hashunter (@hash_hunter) December 2, 2019
Notwithstanding, the MA indicator is a past indicator and usually shows conflicting views in predicting future movements in price.
Bitcoin Futures Premiums on a Rise
More bullish signals are forming on the charts as the premium on BTC price (difference between BTC futures and spot price) is on a hike. Looking premiums on the March 2020 settlement contracts, the premium spike from $120 on Nov.29 to above $170 USD as at time of writing.
$BTC futures can have a premium when Bitcoin is bullish (expectation that price will be higher at expiration).
During sell-offs it's common to see premium shrink.
•March futures +120$ above spot 3 days ago
•March futures +170$ above spot now
— Luke Martin (@VentureCoinist) December 2, 2019
The spike in premiums signals a short term upward run in price as spot price catches up with the futures – a bullish case for the coin, according to Luke Martin.
The post A Rare Bullish Pattern on BTC/USD Charts Forms as Weekly Price Closes Above $7,400 appeared first on Coingape.
Source: Coin Gape