Bitcoin (BTC) is poised to repeat its rise to all-time highs from March, according to on-chain analysis.
Popular trader and commentator Alan Tardigrade drew a key comparison between BTC price action now and mid-February in a post on
Bitcoin on-chain metrics hit record highs.
It took less than a month for Bitcoin to hit an all-time high earlier this year when the classic on-chain indicator flashed green.
Now the same setup is in play and has clear implications for BTC price strength.
“Is it a coincidence or a price movement??” Tardigrade asked as he presented the phenomenon.
“Bull Flag and MACD Bullish Cross occur simultaneously. After breaking the Bull Flag, $BTC will surge higher.”
The metric in question is moving average convergence divergence (MACD). MACD, which measures trend strength on a three-day basis, is busy building positive bars after a “red” period that began in early April.
At the same time, BTC/USD is consolidating within a bull flag and the last time it entered an upward trend with a green MACD, it took several weeks to hit a new all-time high.
The 3-day MACD has been of interest to market observers tracking the current Bitcoin bull market.
In late December, data from Cointelegraph Markets Pro and TradingView confirmed a return to “red” territory ahead of the turbulence surrounding the launch of a U.S. spot Bitcoin exchange-traded fund (ETF).
Don’t worry about BTC price consolidation
Tardigrade adds various opinions on the current BTC price environment.
Related: Bitcoin records best May since 2019 despite ‘predatory’ 3% BTC price drop
Some are warning that Bitcoin, which has been firmly below its March highs for almost three months now, will continue to remain range-bound for several more weeks.
That hasn’t stopped sky-high BTC price predictions from turning profitable, with research firm Fundstrat Global Advisors setting a $150,000 target for 2024.
Meanwhile, traders are targeting $85,000 and above in June.
Nonetheless, the consensus is that the most “parabolic” phase of the bull market is yet to be entered.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.