Could Bitcoin Be on the Verge of New ATH Rally? Analyst Identifies These Conditions
Bitcoin (BTC) enthusiasts have reason to be optimistic as the cryptocurrency appears to be aligning with the prerequisites that have historically heralded explosive rallies to new all-time highs.
Renowned crypto analyst TechDev, known for his insights shared on the social media platform X, has unveiled what he calls the “3-prong signal,” a trifecta of indicators that have preceded previous BTC bull runs.
Bitcoin: The Three Prongs Of Promise
TechDev’s three-pronged signal consists of a proprietary “global liquidity signal,” the moving average convergence divergence (MACD), and the monthly vortex. Each of these indicators, when analyzed together, has shown a striking similarity to patterns witnessed in the 2015-2016 market cycle.
The first prong, TechDev’s “global liquidity signal,” assesses the balance sheets of major central banks versus the dollar index (DXY) and Chinese 10-year bonds (CN10Y). By gauging global cycles of dollar liquidity, this indicator provides insights into the economic forces at play.
The second prong, the MACD, is a well-established trend reversal indicator that has recently turned bullish, reinforcing the notion that Bitcoin’s price could be on the cusp of a significant upswing.
BTC market cap currently at $511.5 billion. Chart: TradingView.com
The third prong, the monthly vortex, has also crossed into bullish territory, adding to the mounting evidence that Bitcoin is poised for an exciting journey ahead.
A Recovery Rally In Progress
While TechDev’s analysis is generating buzz in the crypto community, other reports also suggest a positive outlook for Bitcoin. According to a recent BTC prediction report, the cryptocurrency is currently in an overall uptrend, indicative of a recovery rally.
Despite fluctuations, the $26,000 psychological level has proven to be a resilient support for Bitcoin, with profit takers making brief appearances.
Should buying pressure continue to build above this level, Bitcoin could surge northward, encountering a resistance confluence between the 200-day and 50-day Exponential Moving Averages (EMA) at approximately $26,933, before setting its sights on the 100-day EMA at $26,962.
As of now, Bitcoin is trading at $26,304 according to CoinGecko, with a 0.5% gain in the last 24 hours and a seven-day decline of 2.0%. Despite short-term fluctuations, the convergence of bullish indicators and the historical precedent of Bitcoin’s rally patterns have instilled optimism among crypto enthusiasts.
In a landscape where Bitcoin’s price movements are closely scrutinized, the alignment of these three indicators has set the stage for what could potentially be another explosive rally to new all-time highs, much to the delight of crypto investors and enthusiasts alike.
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