Bitcoin has undergone a strong rally over the past few months. From the March lows, the cryptocurrency has gained over 200%, rallying from $3,500 to $11,700 now.
While already impressive, the <span class=”wpg-tooltip-term-title”>Coin</span></h3><div class=”wpg-tooltip-content”>A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.<p class=”wpg-read-more”><a href=”https://www.newsbtc.com/dictionary/coin/”>» Read more</a><p></div>”>coin is about to form a pivotal buying signal that may suggest more upside is likely. The signal in question last formed when the cryptocurrency was trading under $1,000 at the end of 2016, prior to the 2017 exponential rally.
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Bitcoin Forms Pivotal Buying Signal
According to data from Crypto Quant shared by a crypto-asset analyst, Bitcoin is about to form a long-term buying signal. The signal is the Miners Reserve, which tracks the BTC reserves of entities tied to mining pools.
According to the chart, the indicator is poised to undergo a positive crossover, with the short-term moving average crossing below the long-term moving average.
This signal is important as it was last seen at the end of 2016, prior to Bitcoin’s 2,000% rally in 2017. This signal also preceded two other macro rallies that brought BTC exponentially higher.
The same trader pointed to a swath of other on-chain trends showing that the long-term trend is favoring bulls.
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