This week the cryptocurrency market seems to change the sentiments. Despite yesterday's decline of Bitcoin price by 1.33%, the trend to restore the highs continues.
More and more analysts tend to believe in the recovery of the bullish strength of cryptocurrency, relying on the fundamental and technical analysis of the digital currency market.
Ethereum World News, having gathered tweets of the famous trader fil₿fil₿@filbfilb, who clearly presented Bitcoin’s analytical background for starting another rally.
Using the data of trading on Bitfinex, Feeble explained that when the ratio of long and short trends (L/S) from 1.5 returned to one and then rose above 1.25, Bitcoin rose by 25-50%. When the L/S ratio failed to rise above 1.25, Bitcoin entered the bearish territory and demonstrated new minimums.
Currently, the L/S ratio has reached 1.5, has dropped to one, but could potentially bounce to 1.25 or higher. At the same time, Philb noted that Bitcoin, most likely, has a chance to grow only on the basis of this one indicator, and will hypothetically rise in price by 25% in mid-November, having reached the level of $5000 for the first time.
As previously reported by Ethereum World News, Philb noted that a number of technical indicators have begun to signal in favor of Bitcoin. Philb drew attention to the 12-hour convergence of the moving average, which began a positive trend above zero. The analyst also mentioned the Chaikin Money Flow (CMF) and emphasized that this indicator gives a signal that buyers dominate BTC markets.
In recent days, the Bitcoin downtrend has begun to test the 14-month resistance level, and if the BTC exceeds this level, it can break up to a higher minimum, which will then turn into support.
In an interview to BlockTV Philb also pointed out the reason, which will lead to an increase in BTC in near future - this is a reduction in the reward for bitcoin block mining, which will force miners to save their coin stocks and reduce their sales, thus stimulating the growth of BTC prices on the market .