Last Updated: 21 February 2023
The bitcoin price has touched above $25,000 but has been rejected once again. The monthly chart clearly shows how the price has risen but bitcoin is struggling to leave the resistance zone at $25,000 permanently behind.
Guppy turns green
The Guppy Multiple Moving Average (GMMA) is an indicator that combines two types of moving averages (MAs). It uses historical price data to do so. For the first time this year, the indicator shoots into the green regions.
The technical analysis tool was developed by Australian trader Daryl Guppy. It shows the strength and momentum of the current trend. If a cross of the indicator lines can be seen, it is often confirmation of a new trend.
A bullish cross occurs when the ‘green band’ (representing short-term moving averages) crosses the ‘red band’ (of long-term moving averages).
The #BTC Guppy has flipped for the first time in over a year.
The shorter-term moving averages (blue) have flipped the longer-term moving averages (red) for the first time in over 12 months. pic.twitter.com/mXU7aGyn3G
— Delphi Digital (@Delphi_Digital) February 20, 2023
Several long-term on-chain signals are also turning green, such as the Puell Multiple which shows mining companies redeeming less bitcoin and the Net Unrealised Profit/Loss (NUPL) is also moving out of capitulation mode. It does not immediately mean the price is going to rise in the short term, for now it is struggling at the $25,000 resistance.