Cryptocurrencies
Bitcoin $500,000 Creates a Buzz, But Technicals Point to Rally
- Hedge fund manager predicts correction, then massive rally
- Directional index shows biggest divergence since last year
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Comments from Morgan Creek Capital Management hedge fund manager Mark Yusko that Bitcoin could reach $500,000 in six years are heartening battered crypto bulls. They may be better served taking a look at some underlying technicals in the meantime.
The Directional Movement Index, or DMI, shows the direction of a price trend by charting the divergence between positive and negative levels. According to this indicator, Bitcoin is experiencing the largest divergence since the run-up from October to December of last year. The strength of this move is suggested by the Average Directional Index, a gauge that is nearing the pivotal 25 mark.