Historically accurate “Momentum Indicator” indicates a possible Bitcoin outbreak in the future

Bitcoin (BTC) could see a “massive bull move” if a classic trigger repeats itself from run 2021 through to surge this week.

In one Tweet On December 16, on-chain analyst Matthew Hyland, known by the Twitter username Parabolic Matt, drew attention to the Bitcoin Momentum indicator.

Momentum indicator points to a potential “massive bullish move”

While still below $ 50,000, Bitcoin has already overcome a long-term downtrend in the momentum indicator, which measures closing prices against those of a period in the past.

Historically accurate “Momentum Indicator” indicates a possible Bitcoin outbreak in the future
Historically accurate “Momentum Indicator” indicates a possible Bitcoin outbreak in the future

There have been two such breakouts this year, and after each one the BTC / USD pair saw a significant surge.

“The last two times it broke several months of downtrend this year, it followed a massive uptrend.”Hyland wrote as part of the comments.

BTC / USD pair vs. annotated chart of the momentum indicator. Source: Matthew Hyland / Twitter

While momentum data is not a guarantee of “move up only”, it joins a variety of on-chain metrics showing bullish signals this month, a list that continues to grow.

Hyland is known for its very optimistic price forecasts and last month A sensation was the prediction that Bitcoin would hit $ 250,000 in January 2022 by invalidating one of the popular stock-to-flow pricing models.

The Bitcoin Floor Structure of the RSI and Momentum Indicators
 (daily timeframe) looks very similar to September before the rollback began

â ?? ¢ The momentum has exploded
â ?? The RSI needs a close above resistance to confirm the breakout
â ?? ¢ Bitcoin price is waiting to break

Upon closer analysis, he found that Both the momentum indicator and the Bitcoin Relative Strength Index (RSI) in daily time frames mimick September behaviorwhen the market hit a local low before climbing to a current all-time high of $ 69,000.

The dollar is falling after the Fed

Meanwhile, the spot price movement was quieter on Thursday, with Bitcoin hovering around $ 49,000 despite a notable decline in the US dollar.

The US dollar currency index (DXY), which measures the USD against a basket of trading partner currencies, reversed its prolonged bull run last week and saw a sharp decline on Thursday, data from TradingView shows.

1-day DXY candlestick chart. Source: TradingView

The decline in DXY, which has traditionally been inversely correlated to BTC, follows a boost for both cryptocurrencies and stocks, courtesy of the Federal Reserve.

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