Bitcoin is currently on the brink of a significant technical milestone, a bullish chart pattern last seen before its historic surge to $20,000 in 2017.
The world of Bitcoin is abuzz with anticipation as it gears up to replicate a bullish chart pattern not seen in the last eight years.
A key BTC price moving average crossover is on the horizon, as highlighted in a recent post on X (formerly known as Twitter) on January 9 by the well-followed analyst, Moustache.
The chart analysis reveals that Bitcoin is nearing a moving average crossover, a phenomenon not witnessed since an eight-year hiatus. This technical event is taking place as Bitcoin approaches the $50,000 mark, amidst a broader crypto market revival.
Current market excitement is largely driven by the prospect of the United States’ first spot Bitcoin exchange-traded fund (ETF). Although new all-time highs are still a distance away, there’s a growing belief in the significance of Bitcoin’s recent movements against the U.S. dollar.
Moustache pointed out that on three-week timeframes, the 21-period exponential moving average (EMA) is on the cusp of crossing the 50-period simple moving average (SMA). This crossover, indicative of strong short-term price performance, last appeared in 2016, preceding Bitcoin’s rally to its then all-time high of $20,000 in December 2017.
Moustache further mentioned the emergence of a ‘buy signal’ in a super indicator, hinting at the rarity and significance of these signals.
Despite the optimistic outlook, there remains a degree of skepticism, primarily hinging on the potential aftermath of the ETF hype. Skeptics, including the notable X trader Il Capo of Crypto, speculate a potential downturn for Bitcoin, with predictions of a drop to as low as $12,000.
The upcoming week is shaping up to be quite intriguing. We’re anticipating the release of ETF news shortly. Based on recent trends, my forecast is for an initial market surge. I predict Bitcoin hitting the $48,000 to $50,000 range, and Ethereum reaching between $2,500 and $2,600. Altcoins, particularly those with lower market caps, are expected to experience a more significant increase,” he conveyed to his followers on the Telegram channel on January 7th.
As the market awaits the ETF decision due by January 10, the week ahead promises to be pivotal for Bitcoin’s trajectory, with traders and analysts closely monitoring the impact of these developments on BTC’s price dynamics.
