The money flow index (MFI), which is based on the bitcoin price and trade volume indicates that the first cryptocurrency reached the bottom in December 2018. This was reported by CoinDesk Markets analyst Omkar Godbole.
The task of the MFI — determination of benefits buyers or sellers in the market. The indicator oscillates in the area from 0 to 100: the growth of the MFI says about strengthening of positions of the bulls, and the fall — about the prevalence of negative sentiments. However, Godbole stressed that MFI quite often deviated from the market trend.
When the price of bitcoin fell below $6,000 in mid-November of 2018 and has reached the annual minimum at the level of $3122 in a month, 14-week RSI has also shown decline from $ 43.
However, this indicator, unlike the price of the asset has not updated the minimum and stopped at 22. Therefore, the market has formed bullish divergence, heralding a change of trend.
In February, when the price of bitcoin rose 10%, MFI has reached 44, confirming, in the opinion of Godbole, the fact that the bottom was covered. In favor of this development and also tells the moving average (MA) parameters 50 weeks and 100 weeks.
So, I’m sure Godbole, the indicators confirm the increasing likelihood of a rally closer to halving.
CoinDesk Markets analyst Sam Umet added that the MACD indicator also speaks in favor of the bulls; the histogram has reached its highest level since January 2018 at the level 102,38.
As of 7:00 UTC, bitcoin is trading around $3750.
We will remind, on Monday, March 4, cryptocurrency market capitalization fell by $4 billion.
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