Will Bitcoin See a Massive Bull Run Soon? Two Chart Patterns Mimic BTC’s Climb to $109K.

Bitcoin Chart Indicators Suggest Possible Bullish Breakout

Bitcoin (BTC) traders might want to take note of recent chart patterns, which resemble those seen before the dramatic rally from $70,000 to $109,000 in late 2024.

One prominent pattern involves the Moving Average Convergence Divergence (MACD) histogram on the weekly chart. The MACD is a widely-used momentum indicator that signals potential trend changes. A crossover above or below the zero line often indicates a shift in market momentum. However, these crossovers need to be viewed in context with price action. A bearish crossover, for example, requires confirmation through declining prices, and if this doesn’t happen, it could be a sign of a “bear trap.”

Currently, Bitcoin’s price movement mirrors this situation. In mid-February, the MACD crossed negative, leading to an initial dip in price. However, BTC quickly found support around the 50-week simple moving average (SMA) in March and rebounded above $90K, despite the MACD remaining below zero. This pattern is similar to what occurred last August and September, when the price held above the SMA despite ongoing bearish MACD signals. Later, in mid-October, the MACD turned bullish, driving a rally from $70K to $100K by December.

Another key pattern centers around the 50-day and 200-day SMAs. Approximately four weeks ago, these two moving averages formed a bearish crossover, known as a “death cross,” which signaled the possibility of a longer-term downtrend. However, this signal was a bear trap, with Bitcoin quickly finding support near $75K and reversing course. Recently, the 50-day SMA has started to climb, and a potential bullish golden cross could occur when the 50-day SMA crosses above the 200-day SMA in the coming weeks.

This is reminiscent of last year’s price action, where the death cross in August marked a market bottom, followed by the formation of a golden cross that helped spark a breakout above $70K and eventually pushed Bitcoin above $109K by December.

In summary, these chart indicators suggest that Bitcoin may be gearing up for a bullish breakout, potentially surpassing the January high of $109K.

However, it’s important to remember that chart patterns, while valuable, are not always accurate. External factors like macroeconomic shifts can quickly alter market dynamics, making technical analysis just one tool in forecasting future price movements.