Bitcoin (BTC) traders are predicting that the cryptocurrency is gearing up for its next bull run, following the pattern of previous cycles. Analysts Moustache and Titan of Crypto have identified two key trend lines that suggest a price breakout is imminent.
According to Titan of Crypto, Bitcoin is closely mirroring its past price cycles, indicating that it is approaching the right time for a bullish surge. He highlighted the 21-week simple moving average (SMA) as a significant indicator. Currently standing at $27,900 per BTC, the 21-week SMA is seen as the “bull market line.” When the upward-sloping trend line crosses the current spot price range, it typically signals a prolonged period of upwards movement. Titan of Crypto refers to this as the “bull market kick-off” and forecasts that it is rapidly approaching.
Bitcoin experienced a similar MA cross four years ago in early 2019, which coincided with the previous cycle’s price action. This led to a local high near $14,000. The cross was temporarily disrupted in March 2020 due to the COVID-19 market crash, which Titan of Crypto refers to as a “black swan” event.
Another trend line that traders are monitoring is the 20-month SMA, which has historically marked the beginning of every Bitcoin bull market. Moustache emphasizes the importance of a monthly candle close above the 20-month SMA, as subsequent candles tend to maintain the upward trajectory until the cycle high. Similar to the 21-week SMA, the 20-month SMA had a brief exception in March 2020. Moustache highlights that staying bearish while Bitcoin holds above the monthly 20 SMA-line is difficult to imagine, as historical data suggests that once Bitcoin surpasses this line, it does not fall below it again until the cycle top.
The 20-month SMA is currently at $28,585, indicating that Bitcoin is inching closer to a breakout. However, it is crucial to consider the downside support provided by the 200-week SMA and other daily and weekly trend lines, which have acted as critical levels during Bitcoin’s recent bear market.
It is important to note that this article does not provide investment advice or recommendations. Any investment or trading decision should be made after conducting thorough research and considering the risks involved.
In conclusion, Bitcoin traders are closely monitoring two key trend lines, namely the 21-week SMA and the 20-month SMA, which suggest that a price breakout is on the horizon. The similarities to previous Bitcoin price cycles are giving traders confidence in the upcoming bullish surge. However, it is important to remain cautious and consider various support levels to accurately assess the market’s future movement.