Bitcoin, the flagship cryptocurrency, has recently seen its price surge shortly after a momentum gauge showed its next bull run may be around the corner, shortly after several traders claimed BTC bottomed at $6,000.
According to Bloomberg’s Vildana Hajric, an analysis of the RIG trend lines, a technical indicator that combines the Relative Strength Index (RSI) with momentum studies, shows the cryptocurrency’s momentum gauge surpassed the RSI gauge.
This, per Hajric, could mean a bull run is near, as bitcoin saw its price rise the past three times the two gauges crossed. The last time it occurred, it surged about 20% in about three weeks, starting on August of this year.
At press time, according to CryptoCompare data, the flagship cryptocurrency is currently trading at $6,600 after rising 2.6% in the last 24-hour period. The cryptocurrency recently fell from a high of $6,700 after its RSI showed it was overbought.
Notably, if the cryptocurrency manages to rise above the $6,800 level it’ll be making a high above the last one it had after it bounced off its longstanding $6,000 resistance. This would see it break what’s being seen as a bearish trend.
As CryptoGlobe covered, an analyst argued that since BTC hasn’t been able to make higher highs when it bounces off the $6,000 mark, it’s only a “matter of time” before it dips below it and makes a new yearly now.
Bitcoin has been dropping since mid-December, when it hit its all-time high near $20,000. Although it saw various positive developments this year, bearish sentiment coupled with the US Securities and Exchanges Commission’s (SEC) rejection of bitcoin ETFs and a whale moving over $100 million worth of BTC to exchange kept the cryptocurrency down.
According to Bloomberg, the rise of marijuana stocks has also seen investors leave the crypto ecosystem in search of riches in them. Notably, most cryptocurrencies are now up in the last 24 hours, which could mean the bull market is returning, as predicted by Binance CEO Changpeng Zhao.
Available data shows the cryptocurrency ecosystem added about $8 billion in said period. One of the top cryptocurrencies that saw its price surge is NEO. It’s trading at $19.14 and is up by 9%, presumably over an unknown whale buying 65 BTC worth of its GAS token, helping its price rise 50%.
After looking into the $gas pump that made me 40% gains i found out that 1 guy bought 65 btc worth of $gas in 25 seconds— CryptoAddict (@Betting_Addict) September 28, 2018
This guy will start selling off his gas slowly.
dont buy in to this untill we see a full retracement back to at least 1000 sats pic.twitter.com/c43hndsFCT
The market is also rising thanks to cryptocurrencies like EOS and litecoin, which rose 7.5% and 8.4% respectively. Ethereum, the second-largest cryptocurrency by market cap, is up by 5.6% and is trading at $224.