Bitcoin ‘double bottom’ excites bulls as NVT signal predicts big moves
Bitcoin (BTC) bears striking similarities to recent bear market, but recent bottom could be last, research says.
In a chirping on October 31, popular trading account Stockmoney Lizards made the case for BTC/USD.
Bitcoin “repeats itself” in 2022
In recent days there has been talk of Bitcoin facing a “double top” with two peaks above $21,000.
The implication is bearish – declining volume suggests that bulls will not be able to turn the level to support, and many expect new macro lows to come next.
New analysis provides an alternative, more optimistic perspective. For Stockmoney Lizards, the similarities between 2022 and 2018 are hard to ignore.
“Bitcoin is repeating itself,” it summed up alongside a comparative BTC/USD chart.
This chart compared what happened after Bitcoin reached its 2017 all-time high of $20,000 and 2021 all-time high of $69,000.
After a year-long bear market, BTC/USD approached macro lows similarly in both 2018 and 2022, it suggests.
As such, the June trip to $17,600 and the lows of the first half of October this year may actually have been a “double bottom” similar to Q4, 2018 and the first half of 2019.
Should that prove true, the upside is the logical next step and Bitcoin should avoid a further capitulation event.
NVT Signal bets on “big green candle”
Equally positive news comes from Bitcoin’s NVT signal, which one trader and analyst is reading as a signal of a “big move” to hit the charts.
Related: BTC Price Sees ‘Double Top’ Ahead of FOMC – 5 Things to Know in Bitcoin This Week
A derivative of the NVT ratio, the NVT signal is repeating behavior that triggered significant BTC price gains in years past.
“NVT-Signal predicts a big move for $BTC is coming,” the trader explained next to a diagram.
“When the NVT signal crosses the NVT ratio and the NVT signal was before, the price of $BTC has increased ~450% on average over the last 3 years. I expect we will see a big green light very soon.”
NVT has not always led to successful interpretations. In late 2021, a separate iteration flashed “oversold” despite BTC/USD continuing to spend a year losing, not gaining, in the USD.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
