Despite 10% Drop, Bitcoin Is Still “High Time Frame Bullish” For This Key Reason

bitcoin price featured image

It’s been a tough past few days for Bitcoin. The cryptocurrency has slipped approximately 10% from the $10,100 monthly highs to a recent low of $8,800, triggered by fears that Satoshi Nakamoto is dumping his BTC.
Bitcoin price chart from TradingView.com
While those rumors have since been disproven by blockchain analytics companies, BTC has yet to recover. Worse yet, when it topped at $10,100, it printed a high lower than February’s $10,500 high, indicating that Bitcoin remains in a macro bear market despite the over 150% rally from March’s $3,700 lows.
Yet a key technical indicator, one prominent cryptocurrency analyst says, indicates that Bitcoin is still “high time frame bullish.”
Bitcoin Still “High Time Frame Bullish”: Top Analyst
On-chain analyst Philip Swift recently identified that the Dynamic Range NVT Signal — dubbed a “price to earnings ratio for Bitcoin” — has started to push higher over recent weeks. It’s a sign that Swift says is highly bullish for BTC in the long run.
“Dynamic Range NVTS has been closing up above the lower green band. This is high time frame bullish. Previous NVT Signal lost its efficacy over time. This version with dynamic bands is much more useful as an oversold/overbought tool for strategic investing,” Swift wrote.
Chart from Philip Swift of Bitcoin’s macro price action alongside the Dynamic Range NVTS indicator.
Bitcoin’s fundamentals remain strong too.
Tuur Demeester — the founding partner of Adamant Capital, a Bitcoin alpha fund — recently suggested that due to the money printing by central banks and governments, he thinks BTC is on track to enter its next parabolic phase:

“I think a price target of like $50,000 is not insane at all, especially given just how crazy the money printing is. I would even say between $50,000-$100,000,” the investor told research firm Messari in an interview to commemerate the halving.

Don’t Count Out a Short-Term Correction
While there are these positive fundamental and technical signs, some analysts think that Bitcoin is still subject to a larger short-term correction.
As reported by Bitcoinist previously, blockchain analytics company IntoTheBlock has observed that a majority of its proprietary signals are currently printing “bearish signals.”
Namely, net network growth, large transactions (the tracking of expensive Bitcoin transactions), and in the money (profitability of BTC holders) are currently negative — and were negative prior to this drop.
On-chain data for Bitcoin from blockchain intelligence firm IntoTheBlock. The data shows that the cryptocurrency is “mostly bearish” from an on-chain perspective.
Adding to this, with the daily close just minutes ago, Bitcoin has closed under the 20-day simple moving average. On the importance of this specific technical level, AI and Cloud specialist at Microsoft and noted crypto trader Joe McCann said:
“A close below $9287 for BTC would be bad for bulls, that’s the 20 day.”
These factors in confluence suggest that Bitcoin isn’t done bleeding just yet, even after $25 million worth of longs were liquidated in an hour Thursday morning.
Related Reading: 7% Bitcoin Drop on Satoshi Fears Shows Why Ethereum Is Dangerous to Own 
Featured Image from Shutterstock

Source: https://bitcoinist.com/despite-10-drop-bitcoin-is-still-high-time-frame-bullish-for-this-key-reason/?utm_source=rss&utm_medium=rss&utm_campaign=despite-10-drop-bitcoin-is-still-high-time-frame-bullish-for-this-key-reason

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