Popular bitcoin commentator Lark Davis, who goes by the name of ‘TheCryptoLark” on Twitter, just shared a BTC trend chart that has ‘bullish’ written all over it.
Lark says that the top cryptocurrency is on the cusp of crossing the 50-day moving average, and every time it happened in the past, BTC rallied 42 percent on average. If history repeats, bitcoin could be trading st $15,500 by late-November. Will it happen?
If History Repeats, Bitcoin Price Could Zoom 42 Percent
In his latest tweet, TheCryptoLark posted a bitcoin price trend chart that has given investors 42 reasons to smile. As per Lark’s chart, bitcoin’s price is about to cross the 50-day moving average. And this could open doors to some blazing BTC market action. But why?
— Lark Davis (@TheCryptoLark) October 13, 2020
Lark said that if bitcoin mirrors the 42 percent from its 50-day MA history, it would be trading for $15,500 by late November. However, current spot rates project the figure to be more than $16,000. The point is that BTC stands to gain exponentially if this pattern holds true, but will it happen?
‘Smart Money Buying On-chain’; CME Institutional Trader Net Position Is Bullish
A crypto market analysis firm that goes by the name of Phi Deltalytics (PD) posted a BTC weekly Outlook chart on TradingView yesterday. Although the calculation and analysis are just for the next 7 days, they corroborate Lark’s near-term bullish stance.
PD noted that ‘smart-money’ is buying bitcoin en-masse. The accumulation signals are loud, clear, and for everyone to see.
This indicates smart money has been accumulating during the past few weeks despite the price drop from 12k, and further indicates a strong support at 10k. This is a sign for Q4.
The market analysis firm also implied that bitcoin’s price starts following a bullish trend on the back of these ‘smart money accumulation’ signals. PD also pointed out Grayscale’s $900 million fund infusion in GBTC in Q2 and said that although the number is not significant compared to bitcoin’s market cap, “it does indicate a switch in accredited/institutional investors’ view on the crypto space – where the money comes from to push the next ATH.”
According to PD’s market observations, ‘Chinese smart money is also on the move.’
Apart from this, the sentiment of CME bitcoin futures traders is also following a bullish trend, PD pointed out in its weekly outlook chart. The firm made a reference to the $300 CME gap but said that there is a high probability of bitcoin not closing this gap due to an onslaught of overly bullish market conditions.
Overall the scenario looks bright for bitcoin price to blast to higher valuations in Q4, as the year nears its end.