According to Josh Rager, a technical analyst, there is a reason why the three-day GMMA – Guppy Multiple Moving Average of Bitcoin has turned green. This has happened as a result of the recent rally that the coin faced.
The last time the technical indicator indicated a change in trend, the action led to bull run that extended for 25 months. With major technical indicators showing the formation of a bullish trend for the BTC and a host of other crypto coins, traders have begun to consider the possibility of the BTC’s rally sustaining in the entire medium to short-term without a major pullback.
Possibility Of A Bitcoin Pullback
In the technical terms, the GMMA is usually used as an indicator of the changes that are in the trend. It shows the potential breakouts by analyzing the market momentum.
Cory Mitchelle is one of the swing business people who once worked with the Fortune 500 companies. She described the GMMA as the main indicator for the strength of the trend. According to the swing trader, the level of separation between the long- and short- term moving averages can still work as an indicator of the trend strength. The prevailing strength is usually strong when there is wide separation.
The GMMA has signaled a change in trend to the upper side for BTC in the very first time since 2016. It indicates the strength of the current movement of the leading crypto assets.
The Crypto Year-to-Date Gain Reports
The BTC price has gone up by more than 135% year-to-date against the US Dollar. On the other hand, the other virtual coins such as the EOS and Litecoin have surpassed more than 200% in their year-to-date gains. There is also a very strong possibility of the rally going on before a major correction takes place.
According to a widely recognized BTC trader, the crypto is currently undergoing a fear of missing out phase. The trader known as Peter Brandit has added that the coin’s current rally could further intensify before witnessing a major pullback. Once a number of the sold-out virtual coin bulls have capitulated, the trader points out that a more sizeable correction is likely to take place. This will stop out the same bulls, who are chasing this advance.
Little Resistance For The Coin
As Alex Kruger explained earlier on, there is just a little resistance slightly over $8,500 for the leading virtual coin. On the 21st of May, Kruger, who is an international market analyst stated that over $8,500, a major resistance level for the coin is only $10,000.
With the change in mind, traders are now anticipating the upside movement of the crypto assets to go on, possibly without a major pull back. This is expected to take place in the near term.
According to one leading crypto trader, the resistance for BTC can be obtained at $10,000 and $11,500, and the bulls are also in full control of the market. Once these have been cleared, the clear skies will now be seen.