Coin Edition -
- 2023 has been hard on BTC following its first weekly death cross in history.
- The Average Directional Index for BTC is currently at a level last seen in 2021 and even 2020.
- BTC is currently trading hands at $24,427.99 after a 1.80% increase in price.
The last two years have not been kind to Bitcoin (BTC) and the crypto market in general. Things have not improved much this year aside from the inflation cooling slightly and the Fed stepping back from larger rate hikes.
Despite this, in some ways 2023 has been even harder on BTC following its first weekly death cross in history. This is only one of many reasons why most people are bearish on BTC, but now, it seems like bears need to tread with a bit more caution.
This is because the Average Directional Index for BTC is currently at a level last seen in 2021 and even 2020.
When the ADX climbs above a reading of 20, it suggests a trend is beginning and strengthens the higher the reading. Currently, the BTC/USDT 3-day reading is above 50, which is BTC’s highest level since 2020. The last time this indicator climbed above 50, the BTC price rose by 300%. This reading is now also higher than it has been at any point in 2022.
Although this is not concrete evidence that the BTC price will rally, historical data suggests that shorting BTC when the Average Directional Index is this high is not very profitable. This is certainly something that bears should keep in mind over the next few days.
CoinMarketCap indicates that the crypto market leader is currently trading hands at $24,427.99 after a 1.80% increase in price over the last 24 hours. BTC is, however, still down by 0.63% over the last week.
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