The trend in Bitcoin’s price is either upward or downward. This is usually due to the power of the things. For example, the price of cryptocurrency went up by $ 3800 to $ 65,000 during the last push.
Although there has been some pullback, a trend identifying indicator that was created by the “father” of trend following suggests that Bitcoin is more bullish now than ever. After defending a major conflict line, the cryptocurrency is poised for greater heights.
Bitcoin’s current uptrend does not appear to be over.
The price of Bitcoin continued its year-long uptrend after Black Thursday 2020. It peaked last April at the same time Coinbase Global (COIN), was listed on the Nasdaq.
The first cryptocurrency reached over $ 1000 billion in market capitalization and soared to more than 1,500%. The market crashed enough to make it seem like the cycle was over, with over 60% of it being erased.
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There are mixed signals everywhere. Some point to a bearish market, while others believe that the integrity and viability of the bull market have never been compromised. The current trend was made less clear by sideways price movement after the massive selloff.
However, zoom out using The technical indicator for the Donchian canalsThe uptrend is more apparent over longer periods of time, especially when compared to the highs of previous market cycles.
After defending the median, bulls need to push higher, causing the upper bands to rise. Source:| Source: TradingView.com: BTCUSD
Everything you need to know about Donchian chains, and how to use them
The indicator of Donchian Channels was created by Richard donchianIn the middle of 20th century. Later, he was dubbed “The Father Of The Trend to Watch”.
This tool is used to identify trends. After crossing the median, an indicator of conflict between bulls and bears, an asset begins to trend. The channel bands widen when the bullish and bearish energy expands.
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The median is simply an “average” of assets returning after a period with a trend. A successful defense against the median usually leads to another wave in the direction of the main trend. If this trend is on a rise, as the Bitcoin price shows, the upper channel should theoretically increase as prices rise.
The previous bear markets for Bitcoin began when the median was lost, causing the asset’s trend to the lower channel band. Past bull markets saw several breaks in upper channel before another upward push. Could this be the beginning of many as Bitcoin climbs towards its eventual peak?
– Tony “The Bull” Spilotro (@tonyspilotroBTC) August 18, 2021
Featured image by iStockPhoto, Charts at TradingView.com