Bitcoin has been on a downtrend recently and although it has had multiple recoveries, it is still a long way off from its all-time high. There are a number of indicators that point towards bullish and bearish trends, but mainly seem to stand in the middle. One indicator seems to point to the further upside coming, adding as much as $6K to the price of the digital asset.

What The Daily OBV Chart Says

A crypto education and market analysis account on Twitter recently posted a chart mapping out what the daily OBV chart might be saying for bitcoin. Mapping out previous movements on this chart, Income Sharks shows that the digital asset has once again touched an important point that could cause it to grow further. The last time the cryptocurrency had made this move in the chart was in July 2021.

Related Reading | Bitcoin Dominance Will Continue To Decline In Favor Of Ethereum, Altcoins, FTX US President

We’ll recall that July/August was an important time period for the digital asset. This was the first time that bitcoin had hit the $60,000 price point. It had grown from $30,000 to a new all-time high in a matter of weeks, all of which started with a double bottom made by bitcoin on the OBV chart. Now, bitcoin has once more hit the same pattern and if history is any indicator, it might be getting ready for another rally.

Bitcoin OBV Chart

OBV chart shows bitcoin has hit bottom | Source: Income Sharks

As the digital asset has formed another double bottom on the chart, making a very sharp bullish double V spike, it could signal that a break above $50,000 is imminent. Not only is this an…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.