History is fond of repeating itself in the crypto space, and analysts see Bitcoin (BTC)’s past trend as a recipe for predicting what future holds for the coin and the entire crypto market since most altcoins rely on Bitcoin.
A recap of a past event made by analyst Josh Rager signals that Bitcoin is driving toward a break out of bear that will present 2 year long term trend along the rising wedge.
As far as we know, the bear was in control of the market in most part of the year 2018. However, for this year, Bitcoin and some other altcoins are already struggling against the bear for a break out of the dip.
While Bitcoin seems to be maintaining a stable rise above the $5,000 support level in the past few weeks with a relentless drift upward, market experts including investors have started eyeing a golden cross that will take Bitcoin back above $10,000.
Exponential Moving Average (EMA), also known as exponentially weighted moving average, is a remarkable tool used by reputable analysts in making long term market prediction based on recent price changes.
While traders make use of different EMA days, the 3 days consistent uptrend maintained by Bitcoin has just pushed the crypto coin above the 200 EMA.
Since early 2018, Bitcoin has been under the control of bear. Even though there are slight retests, the 5-year market data indicates that Bitcoin, in the long term, is still under the dominance of bear.
According to the 3-day chart, Bitcoins is bullish, even though it is a short-term bullish rally.
Bitcoin (BTC): Cross Above 200 EMA Is An Historical Bull Indicator
Historically based on data revealed by Bitcoin’s 5-years chart, the cryptocurrency has only crossed the EMA line upward once. Nevertheless, the present 3 days short-term bullish rally maintained has just made the digital currency cross the line upward.
Rager, in his analysis depicted that a cross above the 200 EMA line in the last bear market (October 2015) was succeeded by a long-term bullish run. The analyst added that Bitcoin, then, held the crossing point as support with guppy flipped green, which saw the emergence of two-year uptrend Bitcoin price.
$BTC 3-Day Chart Bullish
Last bear market when the 3-Day Bitcoin price crossed above 200 EMA, it held as support & Guppy flipped green followed by a two-year uptrend$BTC price just crossed above 200 EMA again
Waiting to see if Guppy flips green w/ possible retest of support pic.twitter.com/AWdUXLfSZz
— Josh Rager 📈 (@Josh_Rager) May 7, 2019
While the second cross above EMA since five years has just been initiated, Rager is hopeful that history will repeat itself and Bitcoin will see guppy flips green and a retest of support which would be followed by a two-year long-term bullish rally.
Generally, a crossed above the 200-day moving average technically indicates that a reversal has been initiated.