Bitcoin bulls are in charge again, so to speak. The title alone makes quite a statement and there is no doubt that several readers are questioning how one can make such a decision after only a small step and lack of new heights.
Conclusions have been made for all of us based on what the average directional index is currently saying about an average asset – in this case the top cryptocurrency in terms of market cap. Let’s take a look at what the trend power measurement indicator says about Bitcoin’s price action.
The tug-of-war ends with the bear falling flat
Last week, after a few weeks of chops and stagnation, Bitcoin came out of short-term downtrend resistance, and it is close to making it to high resistance as well.
According to the average directional indicator, shots fired from a bull can actually be a starting pistol before the last leg of a bull race.
Related Reading | The Bitcoin Trend Strength Indicator says the bull run is not over yet
In technical analysis, an index has a reading or not – that is, for example, the MACD can only cross the bullish or bearish, not both at the same time. Average directional indicator is a trend strength measuring instrument that usually comes with two built-in directional indicators একটি one positive and one negative.
The ADX itself, simply says how strong the trend is, and the positive and negative DIs say who is in control. They make reading the tool very straightforward: red-green bullish over green, and red over green is bearish. From this description alone, who is currently winning the battle for Bitcoin, as shown in the picture below?
Bulls just took over the daily trend | Source: BTCUSD on TradingView.com
The price of Bitcoin remains bullish over high time periods
The green line is only occupied by bears, so the bulls have recently returned to the top in the shortest period. Bearish traders were expecting different results, as the weekly setting using this indicator has now passed negatively.
Related Reading | Bitcoin is ready to show strength, but which side will break it
What was able to keep the bear blind was that the maximum deadline still showed a lot of strength for the bulls. No recent downtrend was the attempt by bulls to show weakness, according to indicator readings.
The ADX shows plenty of bull trend left | Source: BTCUSD on TradingView.com
The ADX itself, depicted in blue, has not yet begun to move downwards. When this happens, it could be a sign that the bull trend is finally coming to an end.
Since 2017 was finalized in 2017, Bitcoin has never broken the real bearish compared to the 2014 beer market. When the bear finally regains control over the price of bitcoin, the worst bear market could follow.
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Featured image from iStockPhoto, Charts from TradingView.com