{"id":426452,"date":"2020-06-07T01:00:31","date_gmt":"2020-06-07T01:00:31","guid":{"rendered":"https:\/\/wncen.com\/?p=426452"},"modified":"2024-06-11T14:03:41","modified_gmt":"2024-06-11T14:03:41","slug":"indicator-predicted-bitcoin-top-10k","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/indicator-predicted-bitcoin-top-10k\/","title":{"rendered":"Same Indicator That Predicted Bitcoin Rally Would Top at $10,500 Flips Bullish"},"content":{"rendered":"

On June 1st, Bitcoin surged just under $1,000 in mere hours, rallying from $9,500 to a high of $10,400. It was a move that made analysts immediately flip bullish on the flagship cryptocurrency.<\/p>\n

Chief executive of Real Vision Raoul Pal\u00a0shared<\/a> the below chart in the wake of the move with the following comment:<\/p>\n

\u201cHere it is on a log scale\u2026 this is the biggest chart pattern break out thus far\u2026\u201d<\/p><\/blockquote>\n

\"Bitcoin
Crucial Bitcoin breakout chart shared by Real Vision CEO Raoul Pal (@RaoulGMI on Twitter).<\/figcaption><\/figure>\n

At the time, few expected the cryptocurrency to stumble after such a strong breakout.<\/p>\n

But stumble it did, with Bitcoin again trading against the sentiment of the majority. The asset dove $1,500 in the span of three minutes in a sharp correction that liquidated over $100 million worth of long positions on BitMEX<\/a>.<\/p>\n

Clearly, most traders were caught off guard by the move. But one indicator predicted the rejection that would take place: Bitfinex’s order book. The order book is now predicting that upside is in the works.<\/p>\n

Related Reading:\u00a0Crypto Tidbits: $200M of Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish<\/a><\/h6>\n

Key Bitcoin Market Signal Suggests a Rally Is Imminent<\/strong><\/h2>\n

Prior to the aforementioned $1,500 correction, an analyst shared the chart below.<\/p>\n

It shows Bitfinex’s order book data laid on top BTC’s price action: “It’s a heatmap. A visual painting of the asks\/bids on the book.” The trader who shared the chart said.<\/p>\n

As we now know, the chart called the top of the rally, as Bitcoin was strongly rejected in the $10,400 range, around where the order book indicates there was resistance.<\/p>\n

\"Bitcoin
Bitcoin price chart with OB Dominance Bands indicator shared by crypto trader Coiner-Yadox (@Yodaskk on Twitter). The chart is two weeks old.<\/figcaption><\/figure>\n

According to an updated version of the chart<\/a>, Bitfinex traders are now supporting the price, stacking bids in the $9,500 region. Considering the relevance of the order book data to Bitcoin’s trend, we could be about to see another leg higher.<\/p>\n

\"Image\"
Bitcoin price chart with OB Dominance Bands indicator shared by crypto trader Coiner-Yadox (@Yodaskk on Twitter). The chart is new.<\/figcaption><\/figure>\n
Related Reading:\u00a0Textbook Wyckoff Analysis Shows Bitcoin Is About to See a Brutal Drop to $7,000s<\/a><\/h6>\n

Positive Fundamental Trend Stands to Boost Bull Case<\/strong><\/h2>\n

Other fundamentals are suggestive of upside as well.<\/p>\n

As reported by NewsBTC previously,<\/a> Blockstream CEO Adam Back says that he thinks Bitcoin will hit $300,000 within the next five years.<\/p>\n

He attributed this lofty prediction to two core ideas:<\/p>\n