Bitcoin Bull Indicator Reactivated, But This Threshold Is Crucial
Reasons for Confidence
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Bitcoin is currently demonstrating resilience around the $95,000 mark, recovering from recent lows and seeking to restore its upward trend after a turbulent April. The monthly candlestick for April identified on the CME Futures chart is showing a significant bullish engulfing pattern, which, if maintained through the weekly close, could offer the market the momentum to finish May with another bullish candlestick.
The prospects of this bullish close have the potential to influence the perspective of bearish critics, as noted by crypto analyst Tony “The Bull” Severino.
Significant Bull Tool Signals on CME Futures
The recent price activity of Bitcoin over the last two weeks has shown a positive trend, with a resurgence of bullish sentiment gradually returning among cryptocurrency traders. Interestingly, Bitcoin’s net taker volume has turned positive for the first time in a while. While this trend is still in the early stages, the reemergence of strength is beginning to shift some of the more pessimistic outlooks, particularly as important indicators are beginning to signal a change.
Related Insights
Tony “The Bull” Severino, a widely recognized crypto analyst, recently shared on social media that his unique “Raging Bull” indicator has activated again. However, this indicator is only showing a signal on the Bitcoin CME Futures chart, not on the spot BTC/USD chart.
The disparity between CME Futures and the spot chart, with only the former indicating this bullish signal, has complicated Bitcoin’s current outlook. The Raging Bull tool, relying on weekly price data, aims to capture the initial phases of significant upward movements. Severino notes that the emergence of this signal, despite his previously bearish viewpoint, hints at a notable shift in market dynamics. Nevertheless, he emphasized that a confirmed weekly close is necessary before arriving at any definitive conclusions.
Breaking Through This Level is Crucial
Looking at the monthly chart reviewed by the analyst, the bullish engulfing candlestick follows a sharp rebound from lows in April below $83,000. Bitcoin started April at approximately $83,000, but a swift drop in the initial days caused prices to decline to about $75,000. Nonetheless, the current April candle not only recovers March’s losses but also reflects heightened interest in Bitcoin from institutional investors on the CME platform.
Related Insights
Nonetheless, despite this optimistic candlestick formation, Bitcoin needs to decisively break above the $96,000 to $100,000 range, where past upward movements have encountered resistance. This level serves as a barrier that could decide whether the recent bullish momentum will sustain or falter. Failing to close above this range, whether weekly or monthly, could undermine the Raging Bull signal.
Moreover, the Raging Bull indicator needs to activate on the spot BTC/USD chart to affirm a robust bullish outlook. This will only happen if Bitcoin can move significantly above $96,000.
As of now, Bitcoin is trading at $94,934.
Featured image from Pixabay, chart from Tradingview.com
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