cryptodaily.co.uk 2 h Reading time: ~2 m
As the SEC piles on the misery for the crypto sector most would expect Bitcoin to continue its descent. However, two indicators say otherwise.
SEC pulls crypto market down
Gary Gensler’s Securities and Exchange Commission (SEC) is doing everything in its power to crush the crypto sector. A sector that is potentially seen as a rival to the hegemony of the US dollar is having the life sucked out of it as the SEC attacks on/off ramps and major exchanges.
The retail investors who are just there for the money are leaving in droves and it is likely that many cryptocurrencies will die because of being labelled by the SEC as securities, while others will have their growth stunted as the threat of a potential SEC action hangs over them.
Bitcoin still in upward trend
Meanwhile, as the crypto industry continues its suffering, Bitcoin is still technically in its upward trend; one that it has been following since the beginning of the year. Granted it has seen an 18% correction since topping at around $31,000 in early April, but this is entirely normal.
Weekly Stochastic RSI
One huge indicator for Bitcoin, which is potentially only 2 or 3 weeks away from triggering, is a cross up on the high time frame weekly Stochastic RSI. This indicator is very near bottoming out, and in fact, it is showing bullish divergence, which on the weekly time frame can be very powerful.
Another indicator, which not so many look at, is the Gaussian Channel. This indicator is incredibly powerful in interpreting price movements and is able to predict price trends. When looking at the Gaussian Channel on the higher time frame of 5 days, the data has no false signals, at least for Bitcoin’s short history.
The Gaussian Channel flipped from red to green on the 5 day in early May and is now trending upward. Importantly, the bitcoin price has come back to test the top of the channel and a bounce could be seen from this area.
Bitcoin will outstrip the dollar
This still does not mean that Bitcoin is automatically confirmed as having entered its bull market, but it is certainly a positive sign. To boot, given the decentralised nature of the Bitcoin network, and its scarcity and predictability of supply, it is highly likely to outstrip the dollar as that fiat currency continues to suffer extreme debasement.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.