As indicated by one of the analysts on The Moon Show, Bitcoin’s bullish phase is just starting as there are clear divergences in some important technical indicators.
Technical Signals Behind the Bitcoin Bull Market
In a recent edition of The Moon Show, a discussion about several divergences observed on Bitcoin price charts caught the analyst’s attention. Divergences, i.e. discrepancies between the price trends of Bitcoin and momentum indicators or trading volumes, generally foretell a change in trend direction. According to the analyst, the existing divergences indicate the possibility of a bullish market sentiment, meaning that the ongoing consolidation phase might be replaced by a new upward trend. He specified that such divergences are often observed prior to the onset of new bull runs in the Bitcoin market.
Implications for Investors and the Crypto Market
The initiation of a bullish trend in Bitcoin will have consequences that will be felt not only among cryptocurrency investors but throughout the entire ecosystem. As stated on The Moon Show, in this scenario, we might expect an inflow of money from investors, since renewed positive sentiment in the market may attract traders, increasing trading volume and media coverage. Moreover, this can also cause people to return to the Bitcoin market.
However, the analyst warns that although divergences are a very good indicator, other factors such as the pandemic situation cannot be ignored.
Source — The Moon Show: https://www.youtube.com/watch?v=FVIQO4BOO4c