Bitcoin May Echo March Highs: On-Chain Analysis Reveals a Potential Bullish Pattern
Summary:
On-chain analysis suggests Bitcoin (BTC) may reproduce its trajectory towards record highs, according to trader and analyst Alan Tardigrade. Tardigrade identifies the moving average convergence divergence (MACD) as the key metric indicating this upcoming bullish behavior. However, opinions vary; while some anticipate a prolonged price consolidation, other predictions remain optimistic, with projections up to $150,000 by 2024.
On-chain data indicates that Bitcoin (BTC) may be mirroring its trajectory towards its record highs back in March. The observation was provided by renowned trader and analyst Alan Tardigrade in a post on X, previously known as Twitter, on June 2nd. Drawing a parallel between BTC's price activity currently and in February, he suggested that the same on-chain signal is on the cusp of triggering again, following its indication in the lead-up to previous all-time highs.
The indicator, known as the moving average convergence divergence (MACD), measures the strength of market trends. In the three-day timeframes, the MACD is currently forming positive bars after a bout of downward movement that commenced in early April. Concurrently, BTC/USD is stabilizing within a bullish pattern – mirroring its behavior before its last departure to green MACD and subsequent march to all-time highs.
This three-day MACD has been under the keen observation of analysts tracking the ongoing BTC bull market. Towards the end of December, records show a retreat into negative territory denoting turbulence at the time the US introduced its spot Bitcoin exchange-traded funds (ETFs).
In the midst of BTC's price consolidation, differing viewpoints emerge. While some caution that the consolidation below March's peak, almost three months now, could see Bitcoin remain within its current price range, others forecast a more bullish outcome. Among these optimistic predictions is research firm Fundstrat Global Advisors' $150,000 target for 2024. There is a common consensus among traders expecting a price surge to $85,000 or more in June.
Despite the divergence in outlooks, there's a general agreement that the bull run's prime stage has yet to arrive. This report doesn't provide investment advice or recommendations, as all trading and investment decisions carry inherent risks. Readers should conduct independent research before making decisions.
Published At
6/2/2024 7:23:11 PM
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