Is a Major Bitcoin Bull Run on the Horizon? Two Key Chart Patterns Echo BTC’s Rise to $109K.

Bitcoin Chart Patterns Suggest Bullish Momentum Could Be Ahead

Crypto traders may want to take note of Bitcoin’s (BTC) recent chart formations, which are beginning to resemble those seen before the significant rally from $70,000 to $109,000 in late 2024.

One key pattern is the Moving Average Convergence Divergence (MACD) histogram on Bitcoin’s weekly chart. The MACD is a popular momentum indicator used to identify potential shifts in trend direction. A crossover above or below the zero line is typically seen as a sign of a trend change. However, these crossovers require confirmation through price action. A bearish MACD crossover, for example, might not lead to a downtrend unless it’s followed by weakening prices. If not, it could signal a “bear trap.”

In Bitcoin’s case, the MACD flipped negative in mid-February, causing an initial drop in price. However, the cryptocurrency quickly found support at the 50-week simple moving average (SMA) in March and has since rebounded above $90K, with the MACD still holding below zero. This pattern mirrors what was observed last year in August and September, when Bitcoin held above the SMA despite negative MACD signals. The MACD eventually flipped positive around mid-October, kicking off a rally from $70K to $100K by December.

Another pattern to watch involves the 50- and 200-day SMAs. About a month ago, the two moving averages formed a bearish crossover, known as the “death cross,” signaling potential for a longer-term downtrend. However, Bitcoin found support around $75K, and the market has since reversed. More recently, the 50-day SMA has begun to rise, and a crossover above the 200-day SMA could trigger a bullish golden cross in the coming weeks.

This setup is reminiscent of the previous year, where the death cross in August marked a market bottom, followed by the formation of a golden cross that helped fuel a breakout above $70K and eventually led to a rally past $109K.

In summary, these chart patterns suggest that Bitcoin may be poised for a bullish breakout, potentially surpassing its January high of $109K.

While chart patterns can offer useful insights into potential future moves, it’s important to remember that they are not foolproof. Macroeconomic factors and unforeseen events can dramatically shift market sentiment, making technical analysis just one tool in assessing future price action.