Why This Bitcoin Indicator Points To Bullish Double Bottom

Bitcoin keeps moving to the upside and closes several daily candles in the green. These positive effects have a positive impact on the crypto market. The benchmark cryptocurrency trend upwards and general sentiment shifts to greed territory for first time since May 20,22. 

Bitcoin (BTC). At the time this writing Bitcoin trades for $20,850. There has been a 1% profit over the last 24hrs and a week-over-week profit of 9.9%. Dogecoin and Ethereum (ETH), are both the most successful in the top 10, based on market capital, for similar timespans. 

BTC’s price trends to the upside on the 4-hour chart. Source: Tradeview for BTCUSDT

Bitcoin Rally Is Likely To Keep Going?

There was a strong correlation between Bitcoin and crypto markets. Over the past days, digital assets have been trending against this trend. 

While Amazon and Netflix, Apple, Meta, Meta and other large tech companies suffered from low earnings, Bitcoin rose above the critical resistance of $20,500. The weekend was approaching and BTC and crypto markets closed in green. 

Traditional markets being closed, cryptocurrency can make more profit. The bullish momentum extended on traders’ disbelief and because of Dogecoin and Ethereum’s push to the upside. 

After Elon Musk’s confirmation of his acquisition of Twitter, the meme coin king rallied Friday. Trading volume in crypto markets was bullish, prompting many to take short positions and fuel any potential upward trend. 

Markets can maintain their current trend by liquidating highly leveraged positions. The status quo is likely to continue through the weekend, but could be challenged during the week. Justin Bennett, a crypto analyst:

The strong week-end close from equity markets is likely enough to #crypto pump this weekend. Add in $BTC’s massive short liquidations exceeding $21k and you get another reason. I’m less optimistic about Monday though given where equities closed on Friday (…). The shorts continue to pile up, and liquidations are continuing at high levels. This pump most likely isn’t done yet.

If traditional markets rebound from last Friday’s levels, Bitcoin and the company will follow. The On-Balance Volume indicator (OBV), which is used to gauge market momentum, was pointed out by a pseudonym trader. This indicator formed a double bottom, and then resumed its upward trend. It suggests further appreciation. 

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