Bitcoin: possible signal of new purchases according to TradingView

According to an analysis that appeared on the TradingView website , it is possible that there will be new purchases on Bitcoin 

Buy signals on bitcoin

The analyst took as a reference point a chart that compares the price of BTC and the S&P 500 index which is now at historic highs.

“Right now, the report is testing the previous all-time high since late 2017. The same can be said for both the TOTAL of the cryptocurrency market and the TOTAL of the market (minus Bitcoin).”

On the contrary, according to the trader, altcoins are in danger.

“Historically, buying Bitcoin instead of investing in SPX has proved to be a good idea near this yellow trend line, even if it briefly dips below, as it did during the COVID crash. It can be seen that the break of the yellow bearish trend in 2020 has led to a massive period of bitcoin outperformance compared to legacy markets – with BTC outperforming SPX by about five times between October 2020 and March 2021 ”.

Ethereum: high probability of a bear market 

In line with what was written in the previous analysis on Bitcoin, Ethereum would be in a bear market phase together with the other altcoins.

Another TradingView analyst explains :

“The On Balance Volume is a great indicator for determining what is going on with the total volume situation and helps measure the tension between buyers and sellers. It’s a little harder to use divergences with cryptocurrencies as the process continues to add new offering, but crossovers can be very important, especially if you have an exchange where you can somehow trust the volume data. As you can see the OBV has slipped the 10 EMA and is now leaning heavily on the 20. Very soon I expect the forecast on the chart to proceed extremely bearish.

LINK is on the bull market

The only one among the altcoins that seems to be in a positive phase is Chainlink (LINK).

The author explained :

“After touching the top of the channel two months ago, LINK is currently moving towards the bottom support of the channel”

News Source