Bitcoin has been struggling to break out for more than a few weeks now with its current trajectory looking nothing like it did a few months ago. Up until recently, the bears had been having a field day but now, it looks like there might be a silver lining around this dark cloud after all as a popular crypto analyst has announced a Bitcoin price metric which is currently showing extremely bullish signs.
The OBV Indicator
More than a few analysts have posited different new bottoms for Bitcoin. Founder and CEO of deVere Group, Nigel Green, recently said that “the new normal bottom price for Bitcoin is $10,000…if it fluctuates below this level, it shoots back up again.” Seeing that Bitcoin has dropped below $10k and failed to shoot back up, the general sentiment has become a bit lukewarm.
However, things might look up for the king coin, if a recent indicator is to be believed. According to the crypto trader and analyst @filbfilb, the OBV indicator has shown positive signs of a soon-to-come bullish rally.
Im Long $btc.
First OBV bull div on the 4hour since $3350.
Live by the sword, die by the sword. pic.twitter.com/6V4nHLDvXh
— fil₿fil₿ (@filbfilb) August 30, 2019
OBV or On-Balance-Volume is a technical price indicator that calculates the propensity of a particular asset to change, using its volume. The OBV indicator has now shown a bullish divergence, which describes a situation where the price of an asset hits a new bottom without a corresponding bottom in the predictions by the indicator.
Filbfilb has in the past made certain forecasts which have come to pass and there might be little to no reason to think this would be any different. In addition, another thing to consider is that the last time the OBV indicator showed a divergence this bullish, Bitcoin within a six-month period surged more than 300%.
If this comes to pass and the OBV indicator proves accurate, it would mean that by February 2020, just a few months before the network’s next halving is set to take place, Bitcoin could jump from the current $9,619 at press time to about $38,500 – an almost 200% jump above its current $20k all-time high. A price this high just before a halving would mean that 2020 could eventually be Bitcoin’s best year so far.