Bitcoin could enter a period that signals significant price movements, according to a pattern studied by a popular crypto analyst. The analyst claims that this pattern is similar to the rally periods that Bitcoin has experienced in the past. In particular, Bitcoin is thought to have entered a period similar to the massive price spikes it experienced in early 2016 and late 2020. Here are the details.
Known by the nickname TechDev to the analyst According to Bitcoin, it recently broke a diagonal (diagonal) resistance and retested a horizontal support level. This move is interpreted by the analyst as a sign of a potential upside move similar to movements seen in other cycles. In other words, the analyst thinks that Bitcoin may experience a big price increase in the near future.
“Bitcoin certainly seems to be building a parabolic rally. The question is whether it will be steeper, like late 2020, or shallower, like early 2016. Not a bad position for macro investors.”
Of course, the price movements of cryptocurrencies can be quite complex and unpredictable. Past performance is no guarantee of future performance. Therefore, the analyst’s Bitcoin predictions may not always give a precise result.
TechDev, on the other hand, says that Bitcoin (BTC) has made a strong bounce from the 20 and 50-day exponential moving averages (EMA), turning the previous resistance (#4 below) to support (#6 below). He compares this to a move made by the Nasdaq in 2010.
The analyst also points to the 20-week and 50-week moving averages (MAs), arguing that these represent the first time an uptrend for Bitcoin has ever been.
“Today, Bitcoin’s 20-week MA broke above 200 weeks for the first time ever. It may not mean anything. It’s just a significant improvement.”
Bitcoin is trading at $30,465 at the time of writing, down 1.41% in the last 24 hours.
You can follow the current price action here.