A Rare Bullish Pattern on BTC/USD Charts Forms as Weekly Price Closes Above $7,400

Published December 2, 2019 | Updated December 2, 2019

Bitcoin Price Down

A Rare Bullish Pattern on BTC/USD Charts Forms as Weekly Price Closes Above $7,400

A peculiar formation on the long timeline charts signals an indifferent market as bulls and bears struggle for ultimate control of the market. In what is a first for weekly BTC/USD charts, the candle price closed below the 50-day Moving Average (MA) before seeing the following week’s candle close above the line at $7,400, forming a rather rare set up for traders.

Are Bulls Ready to Take Over the Bears?

Looking at the weekly charts on BTC/USD, the price of Bitcoin looks lively following a green candle closing above the 50MA showing a possible market capture by the bulls. Despite the week starting Dec. 2 recording a red candle, bulls look keen to take on the bearish movement in the market.

According to crypto trader, Nunya Bizniz, the close above the 50MA is nothing but a bullish signal showing a bear trap forming as sellers’ pressure gets exhausted since the Oct. 25 bullish run.

However, the bullish case for the pioneer cryptocurrency is far from being a sure bet as another trader pointed out in reply to Nunyaz. According to the trader, the diverse indicators currently showing on charts using different parameters, is a call to show a possible move in any direction for BTC/USD.

Notwithstanding, the MA indicator is a past indicator and usually shows conflicting views in predicting future movements in price.

Bitcoin Futures Premiums on a Rise

More bullish signals are forming on the charts as the premium on BTC price (difference between BTC futures and spot price) is on a hike. Looking premiums on the March 2020 settlement contracts, the premium spike from $120 on Nov.29 to above $170 USD as at time of writing.

The spike in premiums signals a short term upward run in price as spot price catches up with the futures – a bullish case for the coin, according to Luke Martin.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Lujan Odera 396 Articles
Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.
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