The Bitcoin price action is signaling a bullish crossover unseen for 8 years that mimics the epic 2016 rally, indicating potential new highs ahead. Image by Kerem Goktug Kaya, DALL-E 3.
Bitcoin ETF hype is currently pushing prices higher, but behind the scenes, a key indicator is flashing bullish with the potential to spark additional gains. After an absence of over 8 years, analysis shows the Bitcoin price is preparing to repeat a rare bullish chart pattern not seen since its epic rally in 2016.
Key Indicator Flashing Bullish
A key moving average crossover is in the works according to popular crypto analyst Moustache, hinting Bitcoin could be on the cusp of major gains. Specifically, on the 3-week timeframe, Bitcoin’s 21-period exponential moving average (EMA) is currently attempting to cross above its 50-period simple moving average (SMA).
#Bitcoin (3W)$BTC is about to make a golden cross in the 21EMA/50SMA.
The last time we saw something like this was almost 8 YEARS ago (2016).
– In addition, the “buy signal” in the super indicator
Watch out for the rare signals. pic.twitter.com/EbTZZLJ3Ta
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 (@el_crypto_prof) January 9, 2024
This bullish crossover in the Bitcoin price chart hasn’t occurred since 2016, when it preceded Bitcoin’s historic surge to its former all-time high of $20,000 in December 2017.
Moustache also pointed out Bitcoin’s correlation to the stock market indexes, which reached their all-time highs, tweeting, “We all know that $BTC is very much linked to the stock market. The only difference? It often lags behind.”
What a Bitcoin Price Rally Could Mean
If Bitcoin can confirm the moving average bullish crossover for the first time in 8 years, it could be getting ready for substantial upside, despite it lingering around $50,000 already.
Skeptics have voiced their doubts about the continued upside for Bitcoin, however, expecting the hype around a possible Bitcoin ETF approval to subside shortly after the regulatory decision expected on January 10.
Crypto analyst Il Capo of Crypto anticipates the Bitcoin price retreating to as low as $12,000 after an initial pump to $48,000-$50,000 if an ETF is approved. But if Bitcoin can flash a convincing 2016-like bull signal, the market could quickly turn bullish.
Thoughts for the next few days. pic.twitter.com/J2EzTZtg6N
— il Capo Of Crypto (@CryptoCapo_) January 8, 2024
While the potential regulatory approval of a bitcoin ETF has dominated headlines recently, this developing chart crossover could be an under-the-radar indicator to monitor. Some analysts think an ETF approval is already priced in, so Bitcoin may need fresh catalysts like reawakened technical signals to sustain upside momentum.
Regardless of whether the bullish crossover confirms, its emergence demonstrates Bitcoin’s technical picture is evolving compared to the post-Luna crash depression. Bitcoin’s key moving averages should be tracked for signs of whether 2016’s magic can repeat.
The post Bitcoin Primed To Repeat Bullish Crossover From Epic 2016 Rally After 8 Years of Wait — Here’s What You Need to Know appeared first on Cryptonews.