Bitcoin has been on the up and up the last couple of days. Is it finally showing up that it is ready to let the bulls out to pasture? Or is it just a fake out, and we might even be in for another downturn? Let us try and find out, shall we.

Have we bottomed out or are we going further down

There are plenty of signs in the chart that tells us that we in fact have reached our bottom. In fact, I would say that these signs are more numerous than the other signs. But just because it is more likely that we have reached our bottom does not automatically let the bulls out.

The picture is taken from the daily candle chart at https://coinmarketcap.com/currencies/bitcoin/ 

The most alarming thing is that we might be in a new Bear Flag. And if we are it could very well spell disaster for the near future. And if we were to break it on the downturn that would be very bad. But then again it could break on the upturn as well nullifying the flag.

The picture is taken from https://www.lookintobitcoin.com/charts/200-week-moving-average-heatmap/ 

Another thing that can easily turn bad is the monthly chart when we put in the 200 weekly moving average, the nice curved line. Last month we closed below the 200 weekly moving average. And as you can see with this month as we are now we are barely above the line. If we were to close this month below as well, that would be very bad. It would mean we now have turned it from support to resistance. But we still have a few days to go before it will close.

We can't forget about the first ever bearish engulfing candle that Bitcoin printed on the half-year chart recently. They tend to be able to break havoc as well. But that is the same as any of the data, not a certainty. Bitcoin has in the past shown fake Bullish engulfing candles. As well as "normal" bullish engulfing candles. So There is a president with fake engulfing candles on the half-year chart. But it is still a looming danger.

Bull or Bear will win the fight

While the data in the chart is rather inconclusive when it comes to if we have reached the bottom or not. The mindset among us, the buyers, appears to be optimistic. I have previously reported that for the first time ever the number of wallets that holds 10k Bitcoin or more turns to their numbers when they reached 100 wallets a while back. So the whales appear to take this low price as a great opportunity to amass even more Bitcoin.

/

And recently a similar buying frenzy has been seen among the shrimps, people holding between 0.005 and 1 Bitcoin. So they also appear to be optimistic about the future of Bitcoin. Or they would not be buying it in these numbers. Numbers only see back in 2017. They are buying up most of the new Bitcoins entering the market.

But with all this buy pressure should we not already have started the new Bullrun? Well, there are other factors at play as well. One of them I have previously reported on a while back. The capitulation of the Bitcoin miners. They have been forced to sell off their Bitcoin reserves. And until these run out. I think we will be locked into a stalemate.

Of course, there are probably other factors to take into account as well. But these are the ones known to me. 

Sadly I am unable to say with certainty if the bulls are ready to come out and play or not. I will let you be the judge of that. As this is merely information and not advice of the financial variety.

What are your thoughts on this tho, are you optimistic or do we still have some time to go before the bulls come out? Or do we even have to go lower before we can think about bulls? Please share your thoughts on these topics and anything else in the comment section down below.

See you on the interwebs!

Picture provided by: https://pixabay.com/