Indicators Show Biggest Signal To Buy Bitcoin Since April 2020

While the bullish rally continues, some technical indicators of bitcoin may indicate that the biggest signal to buy BTC since April 2020 is here.

Bitcoin closes above 21-week average and 200-day average

As cryptoquant noted, the cryptocurrency closed within a week above the 21-week and 200-day moving averages (MAs).

Bitcoin’s moving average is a technique used to correct price data by determining the average price over a given period of time.

For the 21-week average, the last 21-week data is used, while for the 200-day average, the last 200-day prices are used.

This method “flattens”the price curve in the sense that it eliminates a large number of small Up-Down price fluctuations that have nothing to do with long-term analysis. This results in a more relaxed curve without sudden peaks.

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Now, a chart showing how the current BTC price relates to these two indicators:

BTC price 21-week and 200-day MAs / source: CryptoQuant

As the chart above shows, the Bitcoin price closed above two indicators, signalling a buy not seen since April 2020.

The current price trend may also indicate that the currency follows the “Wykoff accumulation” model. Essentially, Weikoff’s accumulation curve occurs when bitcoin enters a period of consolidation in the trading December.

For now, Bitcoin appears to be in Phase d, the latest model in which the price moves up and down in a certain December. If the Model is indeed correct, BTC will soon test $ 50K after a small consolidation in Stage e.

Another indicator, the net flow of spot change, seems to have sharp negative peaks at the moment. The NetFlow metric curve shows the amount of net BTC entering or exiting exchanges.

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A positive value means a larger input while a negative value means a larger input

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