When bitcoin price action is sideways and directionless for most of the year, bulls and bears argue over which direction will ultimately be chosen.
However, considering macroeconomic conditions such as rising interest rates, sinking stock markets, and rising debt, the bears are not willing to throw in the towel. But they might want to after seeing this chart.
bitcoin price chooses a direction: up and away
bitcoin and other cryptocurrencies tend to be notoriously volatile. But volatility has dropped to almost nothing since the FTX crash.
Few have been willing to take risks with btc and altcoins while macroeconomic conditions are on the brink of collapse. The result was a big move from below, but also more than six months of consolidation and confusion.
But after several months of sideways price action, bitcoin appears to have chosen a direction and broke out to form a new trend. The bears, however, remain stubbornly short on market sentiment.
Bearish traders may want to reconsider their positioning after taking a look at the Directional Movement Index.
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There is no denying: Bulls are in charge | BTCUSD on TradingView.com
Bullish Directional Movement Is Anything But Average
The directional movement index is usually included with the average directional index and consists of a negative and a positive directional indicator. The premise of the tool is simple: when DI+ (green) is above DI- (red), the asset is bullish and DI- is above DI+ when it is bearish.
This technical analysis indicator is currently showing the DI+ soaring, while the DI- is falling and below the 20 line. The 20 line is highlighted more by the ADX, which is not pictured. When the ADX rises above 20, the tool suggests that a trend is active and strengthening.
bitcoin is not yet above 20 on a weekly basis, but has started to do so on lower time frames. With how strong the recent move was, the ADX could confirm above 20 over the next week or two. At that point, the bears might finally be forced to admit that a new uptrend has blossomed.
