Bitcoin Bulls Are Back! Latest Signal Confirms Bullish Trend is Brewing
17 November 2023 - 3:00AM
NEWSBTC
Those burned by the last big Bitcoin bull run are rightfully
skeptical that another one is here so soon. However, a trend
strength indicator is now confirming the existence of a new bullish
trend emerging. Are bulls finally back in control over crypto?
Sidelined investors and traders will want to pay attention. How
Technicals Could Confirm A New Bullish Trend In Bitcoin Bitcoin
price is pulling back after a few failed attempts to make it though
$38,000 resistance. This sudden weakness after a major breakout is
both reassuring for bears and confusing for bulls. Those on the
sidelines still aren’t certain what to do. But that’s what
technical indicators were designed for – to eliminate noise and
emotions, allowing the tools to make the decisions for you. Related
Reading: Bitcoin NVT Remains Bullish, All-Clear Signal For Rally?
According to a trend strength measuring tool called the Average
Directional Index, the bullish Bitcoin trend just became official
as the indicator reaches above a reading of 20. The last time that
BTCUSD reached above 20 while bulls were in control was back in
August 2020, prior to a 450%+ rally. For comparison sake, another
450% rally would put the price per coin around $200,000. However,
each individual trend behaves differently and tops out at different
ADX reading. This means anything is possible, but for now, the rise
above 20 on the ADX is notable. The trend is confirmed by a reading
above 20 | BTCUSD on TradingView.com How To Tell Bulls Are In
Control Of Crypto With The ADX The Average Directional Index, as
mentioned, is a trend strength measuring tool. It was created by J.
Welles Wilder, Jr., known as the father of several technical
analysis indicators. Wilder also developed the Relative Strength
Index, Average True Range, and Parabolic SAR. The ADX confirms a
trend is active above a reading of 20, while anything below 20
suggests a weak trend and potential sideways price action. The tool
often includes two additional indicators, the DI+ and DI-, which
show which side of the market is in control of price action.
Related Reading: Bitcoin Price Is Up Despite SEC Delay, Is The Spot
ETF Decision Priced In Already? If the DI+ is above the DI- bulls
are in control. Bears are in control if DI- is above DI+. The
premise is simple and provides an easy way to visually see which
side of the market is dominating. Not only are bulls in control,
but the DI+ is at 36, while the highest reading back in August 2020
was 32. This means that bulls are stronger now than they were back
then, and look what happened. The above chart was originally
featured in Issue #27 of CoinChartist VIP: The Ethereum Issue.
Check out the latest issue for free. Follow @TonyTheBullBTC &
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Telegram for daily market insights and technical analysis
education. Please note: Content is educational and should not be
considered investment advice. Featured image from Shutterstock,
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