On June 1, Bitcoin rose just under $ 1,000 in just hours, rising from $ 9,500 to a high of $ 10,400. It was a move that made analysts instantly bullish from the flagship cryptocurrency.
Director of Real Vision Raoul Pal shared the graph below after the move with the following note:
“Here it is on a log scale … this is the largest diagram pattern yet …”
At the time, few expected the cryptocurrency to trip after such a strong outbreak.
But it did stumble, with Bitcoin trading again against the sentiment of the majority. The asset dived $ 1,500 over a three-minute time frame in a sharp correction that liquidated over $ 100 million in long positions on BitMEX.
It was clear that most of the traders had been taken aback by the move. Only one indicator predicted the rejection that would take place: Bitfinex’s order book. The order book now predicts that the positive side is in the works.
Related Read: Crypto Facts: $ 200 Million In Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish
Important Bitcoin market signal suggests that a rally is imminent
Prior to the aforementioned $ 1,500 correction, an analyst shared the chart below.
It shows Bitfinex’s order book data that has been placed on BTC’s price action: ‘It is a heat map. A visual painting of the questions / bids on the book. The merchant who shared the card said.
As we now know, the chart called the top of the rally as Bitcoin was strongly turned down in the $ 10,400 range, where the order book indicates resistance.
According to an updated version of the map, Bitfinex traders now support the price and stack bids in the $ 9,500 region. Given the relevance of the order book data to the Bitcoin trend, we would be about to see another stage higher.
Related Reading: Wyckoff Textbook Analysis Shows Bitcoin Is About To See A Brutal Drop To $ 7,000
Positive fundamental trend stands for strengthening Bull Case
Other fundamentals also suggest an upward trend.
As previously reported by NewsBTC, Blockstream CEO Adam Back says he thinks Bitcoin will reach $ 300,000 in the next five years.
He attributed this sublime prediction to two core ideas:
- Compared to traditional asset classes such as bonds and real estate, Bitcoin makes sense. Bonds, he claimed, are overvalued (presumably referring to their lack of return) and real estate is risky because of the ongoing work from the home.
- Printing money by central banks and governments quickly proves the value of a scarce resource like BTC.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Same Indicator That Predicted Bitcoin Rally Would Top at $10,500 Flips Bullish