With Bitcoin crossing $8,000 and with Consensus bulls on the horizon, BTC’s bullish swing has well and truly begun. From entering the famed Golden Cross to increasing dominance to over 60 percent, the market is in a firm upswing. However, the key question of whether this surge will sustain investor activity remains.
According to Willy Woo, the bull season has manifested by 99 percent. He cites the importance of the 200-day moving average and the price of Bitcoin sustaining the same for a “sizable time,” to the overall likelihood of a bullish swing.
His tweet read,
“In BTC’s 10yr trade history, crossing above the 200 day moving average (blue line) for any sizable time (say 8wks+) has signaled bull season. Even a super conservative trend line support puts us above the 200DMA.
Bull season is now 99%.”
Bitcoin broke its 200-day moving average on 2 April, owing to the first inkling of the bull-run. The rise above $5,000 was the cryptocurrency’s highest daily gain since April 2018. Since then, the coin has been consistently trading above the same and it currently stands at 84 percent over its 200MA.
Additionally, a “conservative” support level can be placed at $5,024, which Bitcoin last touched on 16 April. Since then, the coin’s price has risen by 61.22 percent, breaching several resistance levels in the process. The short term support can also be placed at $6,976. However, the same is 16 percent below the current price of Bitcoin.
In order to completely confirm the “bull-run,” Woo suggests that on-chain volume is the key. He believes that this metric is a “proxy to longer term investor activity.” On-chain volume has been rising consistently since February 2019, but has flattened out in the past few weeks.