Bitcoin has been on a strong rally since March lows. The coin moved from $ 3,500 at those lows to around $ 12,500 at local highs. Unfortunately for the bulls, a crucial sell signal is about to appear that may mark a medium-term top for Bitcoin. The indicator was last formed just before the fall of the March capitulation.
Bitcoin could soon experience a pullback – trend indicator shows
Bitcoin has seen a strong rally from the March lows. The cryptocurrency more than tripled, climbing from $ 3,500 to highs of $ 12,500 in August. The coin is now trading at $ 10,800, slightly below those highs but still well above March lows. Unfortunately for the bulls, a crucial trend indicator has formed suggesting that the rally Bitcoin has experienced could be over soon. The indicator, the Parabolic Stop and Reversal (Parabolic SAR), is about to print a textbook “sell” signal after the strong bullish move. If Bitcoin closes its weekly $ 10,000 candle in the coming weeks, it will print this sell signal. Previous sell signals have been disastrous for Bitcoin’s previous bull trends. Just before the fall of the March capitulation, a sell signal appeared. And near the highs of $ 14,000 in 2019, just two weeks after it hit that level, it also formed this sell signal. Commenting on the indicator, a crypto trader shared the chart seen below and also wrote:
“The weekly parabolic SAR is approaching to issue the” SALE “signal. It will happen if the price drops to $ 9,800. Note that the signal is lagging and the indicator is generally used as an SL ‘level pointer.
BTC price action chart from mid-2017 with a parabolic SAR analysis by crypto analyst CryptoHamster. TradingView.com Chart
Bulls in control in a macro time frame
The bulls remain in control over the long term despite the medium-term maximum potential that is forming based on the indicator. Crypto Quant, a blockchain analytics firm, recently noted that 10 out of 11 of its long-term on-chain indicators are currently bullish.
Featured Image from Shutterstock Price Tags: xbtusd, btcusd, btcusdt TradingView.com Charts Sell Signal Last Formed Before March Bitcoin Crash Is Moving Slowly
Link original: https://bitcoinist.com/sell-signal-last-formed-prior-to-march-bitcoin-crash-is-inching-closer/?utm_source=rss&utm_medium=rss&utm_campaign=sell-signal-last-formed-prior-to-march-bitcoin-crash-is-inching-closer
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