Bitcoin price rose above $5,800 over the weekend before retracing to trade at just below $5,700 as at the time of writing. According to the founding partner of Adaptive Capital, Murad Mahmudov, a sustained hold above $5,500 would indicate a significant bullish outlook for the cryptocurrency.
Mahmudov made his opinion known in a 22-part Twitter thread posted on Saturday, 4th May 2019. The thread contained 20 reasons why he thinks that Bitcoin will remain bullish.
Murad Mahmudov says in the opening thread:
“0/20. My list of 20 reasons why I think that if 5450-5550 area holds — its very bullish & megamonsoon is still on the table: I repeat, IF, 5450-5550 area holds, THEN, it’s quite bullish.”
Some of the indicators that formed the basis of Murad Mahmudov’s postulation include the following:
As it stands, Bitcoin is currently trading in the midst of an ascending channel. This is characterised by the formation of higher-highs and higher-lows. By sustaining this pattern, there is the tendency that BTC will break out of the upper boundary of this channel to instigate a strong upward movement.
Two reliable indicators, Stochastic Relative Strength Index (RSI) and the traditional RSI are both suggesting that there is still plenty room for Bitcoin to push higher.
Murad Mahmudov also notes that BTC is currently trading above key moving averages. They include the 50 week SMA and the 89 week EMA. These are both strong indicators that caught multiple local bottom and top areas in both previous and current cycles.
Murad Mahmudov, who was previously bearish about Bitcoin until early 2019 appears to have made a complete turnaround. At some point, he even noted that the waning number of Bitcoin mentions on Twitter indicated a loss of interest by investors.
All that has changed now, and the bulls are taking over the market again. Crypto users are making purchases via platforms like CryptoFish, where they can easily buy Bitcoin and altcoins using their credit and debit cards.Twitter
Murad Mahmudov’s analysis remains that if the $5,500 region holds for Bitcoin, we may soon be seeing a ‘Megamoonsoon’ across the board as cryptocurrencies will be expected to surge significantly.
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