Bitcoin Trend Strength Suggests No End In Sight, Second Most Poweful Historically
Crypto enthusiasts expected Bitcoin to pick up momentum in 2020 thanks to the asset’s block reward halving mechanism. At best, investors anticipated a repeat of the 2017 rally, but the law of diminishing returns made such a scenario an unlikely reality.
But instead, the current uptrend is now the second most powerful in the cryptocurrency’s history. Here’s what a technical trend strength measuring tool says about where Bitcoin could go from here.
Bitcoin Trend Strength Second Most Powerful Historically: What This Means
According to the Average Direction Index, created by market technician J. Welles Wilder, Jr., the current uptrend on weekly timeframes is now the second most powerful in history.
The tool is used to gauge trend strength and give a read on when trends could be coming to an end. Bitcoin has reached a level that could signal the trend is nearing its conclusion but given all of the other factors and where the indicator says the cryptocurrency is compared to its 2013 cycle, more upside is possible.
The current ADX reading around 65, which according to the 2013 rally, pumped another 2,000% before any meaningful correction took place. That correction resulted in a 50% plummet, but ultimately the rally ended in late 2013 with an over 10,000% ROI from the current ADX reading to the peak.