Bitcoin (BTC) may see a “huge bullish transfer” if a traditional set off from the 2021 bull run repeats this week.

In a tweet on Dec. 16, on-chain analyst Matthew Hyland, identified by the Twitter deal with Parabolic Matt, drew consideration to Bitcoin’s momentum indicator.

Momentum indicator hints at potential “huge bullish transfer”

Whereas nonetheless underneath $50,000, Bitcoin has already damaged out of a long-term downtrend on the momentum indicator, which measures closing costs in opposition to these from a interval prior to now.

Two such breakouts have occurred this 12 months, and after each, BTC/USD went on to see appreciable upside.

“The earlier two occasions it broke out of a multi-month downtrend this 12 months, a large bullish transfer adopted,” Hyland wrote as a part of feedback.

Whereas not a assure of “up solely” value motion, the momentum knowledge joins numerous on-chain metrics flashing bull indicators this month — an inventory that retains rising.

Hyland is thought for his extremely optimistic value forecasts, and final month triggered a stir by predicting that Bitcoin would hit $250,000 in January 2022 whereas invalidating one of many fashionable stock-to-flow value fashions.

#Bitcoin backside construction on the RSI and Momentum indicators (day by day timeframe) look similar to what occurred in September earlier than the reversal up began

•Momentum has damaged out
•RSI wants an in depth above resistance to substantiate breakout
•Bitcoin value ready to breakout pic.twitter.com/XDwiUsSj2U

— Matthew Hyland (@Parabolic_Matt) December 15, 2021

In additional evaluation, he famous that each the momentum indicator and Bitcoin’s relative power index (RSI) on day by day timeframes are mimicking habits from September, when the market put in an area backside earlier than rising to present $69,000 all-time highs.

Greenback dives publish Fed

Spot value motion was in the meantime quieter on Dec. 15, Bitcoin lingering round $49,000 regardless of a conspicuous drop within the U.S. greenback.

Bitcoin sheds ‘dumb cash’ as retail buys most BTC since March 2020 crash

The U.S. greenback forex index (DXY), which measures USD in opposition to a basket of buying and selling associate currencies, reversed its prolonged bull run final week, with Dec. 1 seeing a pronounced comedown, knowledge from TradingView exhibits.

Historically inversely correlated with BTC, DXY’s drop follows a lift for crypto and equities alike courtesy of the Federal Reserve.