Bulls Regain Control Over Bitcoin Trend Strength: What To Expect

Bitcoin bulls are back in charge, so to speak. The headline alone makes quite a statement, and there are no doubt several readers questioning how one might draw such conclusion after only a small move and lack of new highs. The conclusion has been made for us all, depending on what the Average Directional Index is currently saying about an asset – in this case the top cryptocurrency by market cap. Let’s take a look what the trend strength measuring indicator says about Bitcoin price action. Tug-Of-War Ends With Bears Falling Flat Last week, after several weeks of chop and stalemate, Bitcoin broke out from short-term downtrend resistance, and is close to making it though high timeframe resistance as well. The shots fired from bulls might have actually been the starting pistol ahead of the final leg of the bull run, according to the Average Directional Index. Related Reading | Bitcoin Trend Strength Indicator Suggests Bull Run Isn’t Yet Over In technical analysis, a reading on an indicator either is or it isn’t – meaning, for example, the MACD can only be crossed bullish or bearish, not both at the same time. The Average Directional Indicator is a trend strength measuring tool that typically comes with two built-in directional indicators – a positive and a negative. The ADX itself, simply says how strong the trend is, and the positive and negative DI tell who is in control. They make reading the tool very straig...