After years of sideways trading and volatility, Bitcoin may be signaling an impending price rally similar to its 2016 movement that led to all-time highs. Analysts cite technical indicators showing an emerging bullish crossover pattern that last occurred before the major 2017 rally.
- Bitcoin’s price is showing a bullish crossover of its 21-period and 50-period moving averages similar to before the 2016 rally.
- An ETF approval could fuel further gains, though some expect the current price to already reflect this.
- Technicians point to moving averages as metrics to monitor for signs of a repeating trend.
- The market will closely watch the regulatory decision on a potential ETF on January 10.
According to analyst @el_crypto_prof @el_crypto_prof, Bitcoin’s 21-period exponential moving average (EMA) is poised to cross above its 50-period simple moving average (SMA) on the 3-week timeframe. Twitter Link. The last time this bullish crossover occurred was in 2016.
The anticipation of a potential Bitcoin ETF approval by the SEC on January 10 is also adding fuel to the recent price rally. However, some argue the current price may already reflect this possibility. Technicians cite key moving averages as metrics to watch for any repeat of the 2016 growth trend.
The emerging bullish crossover marks a technical evolution from the post-Luna crash period, indicating increasing buyer interest. Market participants should monitor Bitcoin’s moving averages for potential signs of a coming rally. However, skeptics expect the ETF hype to fade and prices to potentially drop after the regulatory decision.