Amidst the Bitcoin ETF excitement driving current price surges, a crucial indicator signals potential bullish momentum, suggesting a repeat of a rare chart pattern not witnessed since the epic 2016 rally. An analysis reveals that Bitcoin might be on the verge of a significant move, thanks to a notable moving average crossover, which hasn’t occurred in over 8 years.
The identified crossover involves Bitcoin’s 21-period exponential moving average (EMA) on the 3-week timeframe attempting to surpass its 50-period simple moving average (SMA). This specific bullish crossover was last observed in 2016, paving the way for Bitcoin’s historic surge to its previous all-time high of $20,000 in December 2017.
Crypto analyst Moustache, who brought attention to this indicator, also highlighted Bitcoin’s correlation to stock market indexes, noting that Bitcoin tends to lag behind but often follows a similar trajectory.
If Bitcoin successfully confirms this rare moving average crossover, it could signify a forthcoming substantial upside, even though the current price hovers around $50,000. While skeptics express doubts about prolonged Bitcoin gains, especially after a potential Bitcoin ETF approval, technical signals like the anticipated bullish crossover might provide renewed momentum.
Some analysts argue that the market has already factored in the potential approval of a Bitcoin ETF. In such a scenario, Bitcoin may require fresh catalysts, such as reinvigorated technical signals, to maintain upward momentum.
Crypto analyst Il Capo of Crypto, anticipating a pullback to as low as $12,000 after an initial pump to $48,000-$50,000 in case of an ETF approval, acknowledges the significance of technical signals. The emergence of a bullish crossover, similar to the 2016 pattern, could quickly turn the market bullish, showcasing Bitcoin’s evolving technical landscape compared to the post-Luna crash period.
While the spotlight has been on the potential regulatory approval of a Bitcoin ETF, this under-the-radar chart crossover is emerging as a noteworthy indicator to watch. Whether the bullish crossover confirms or not, its appearance underscores the evolving technical dynamics for Bitcoin and the potential for historical patterns to repeat.
