Following Friday’s $28 billion market rout, the weekend saw renewed buying pressure and things quickly started to recover. By late Sunday Bitcoin had already returned to $8,800 and many of the altcoins were doing even better. Another chance to correct dissipated as momentum returned to crypto markets and dip buying was clearly going on.
Traders and crypto analysts are constantly looking for signals that the bear market is definitely over and a major trend reversal has occurred. Markets were up an impressive 50 percent in May surging from $175 billion to $265 billion by the end of it. More signals are indicating that a new bull market has begun so any corrections now will be opportunities to buy the dips.
1 Week Super Guppy Goes Grey
Analyst and trader Josh Rager looked at the three day super guppy last week when it flipped to green for the first time since 2016. A Guppy is a multiple moving average technical indicator that identifies changing trends, breakouts, and trading opportunities in price. It achieves this by combining two groups of moving averages with different time periods.
To confirm the signal the one week guppy has now started to turn grey which is a prelude to green.
“After looking at the 3 Day Guppy chart, we confirmed a bull trend as it flipped green. Now we see the 1 week flip from red to grey signaling end of bear market after the price pushed 7k. Guppy is a lagging indicator but makes for strong confirmation IMO,”
Many are still expecting a sizeable pullback and the 30 percent figure has been bandied about recently. During the last uptrend Bitcoin corrected by over 30 percent eight times yet still recovered to post new all-time highs. When asked about buying dips, Rager added;
“People have questioned if “dips are buying”. And my answer is still a strong “yes, dips are for buying”. Even if we do see strong pullback lasting weeks, the correction will only serve to refuel a strong move up post-correction with past avg of 150% gain between 30% pullbacks,”
The other notion at the moment is an altcoin resurgence if and when Bitcoin pulls back. So far this year, as in early 2017, altcoins have been tethered to the movements of the bigger brother. During May Bitcoin gained 55 percent, Ethereum 60 percent, BCH 60 percent and EOS made 60 percent. Momentum is all pretty similar and the markets have not decoupled. This would have to occur for altcoins to start eating into that 56 percent dominance than Bitcoin has held for the past couple of months.
A major correction could signal the beginning of altseason, but either way there will be plenty of opportunities to buy the dips as this uptrend gains momentum.