Bitcoin price is trading at $24,000 at the moment, and only recently held a retest of $20,000. Yet within weeks, Bitcoin price could double to more than $40,000 in a flash.
Here is a closer look at the technical combination that has in the past had a near-perfect track record of signaling the start of the strongest bull trends in crypto history.
BTCUSD Signal Is Back That Leads To Explosive Move
Markets are cyclical and history is said to rhyme. Each cycle in BTCUSD has played out slightly differently, but they’ve almost all begun with the same flash bang setup that resulted in an explosive move, followed by a sustained rally.
That particular setup involves a combination of the logarithmic moving average convergence divergence indicator (LMACD) and the Bollinger Bands on the 3-week timeframe.
In the past, this particular setup has always resulted in Bitcoin price at least doubling, even tripling, in an a matter of days to weeks. The combination of the two technical tools generates the signal when BTCUSD passes above the middle-line on the Bollinger Bands, and when the red trigger passes above the dashed middle line on the LMACD.
This setup is back for only the fourth time in Bitcoin price history, with time is on its side according to cyclical behavior. The signal each time confirmed the bottom was in, and started a massive move higher.
The indicator combo is about to trigger a buy signal | BTCUSD on TradingView.com
Why Bitcoin Price Could Double In Less Than Six Weeks
Each time the signal fired and BTCUSD closed above the middle-line on the Bollinger Bands. This confirmation caused price to rally to the upper band over the next 3-6 weeks, resulting an on average a 118% return.
In 2013, after the signal triggered, Bitcoin immediately rallied 139% to the upper band, then continued another 19,000% higher.
The second signal in 2015 saw the weakest initial rally with 76% ROI after making it above the middle-line – which on the Bollinger Bands is a 20-period simple moving average. The full rally resulted in more than 7,000% in gains.
In 2019, BTCUSD pumped another 139%, then added another 1,000% before the bull run fizzled out. Now the signal is back, and the upper Bollinger Band is located at roughly $40,000 per BTC, or around double from here and the recent retest of $20,000.
Historical data suggests that the top cryptocurrency by market cap could see a strong move soon, with as much as 118% on average initially. The average across the three rallies that followed, rounds out to roughly 9,000% on average.
Much of the gains were during the early days of crypto, so don’t expect anything that significant. But the math is what it is, and although past performance is not a guarantee of future results, the probability of an explosive move becomes much higher once the signal confirms.
We are getting closer to the point of no return in #Bitcoin pic.twitter.com/fVYwwHUCcG
— Tony “The Bull” (@tonythebullBTC) March 15, 2023
@TonyTheBullBTC on Twitter or join the
TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com