Table of Contents
Quick Facts
- Bitcoin’s price plummeted to $3,200 in December 2018.
- The subsequent recovery has been nothing short of remarkable, with the price more than quadrupling in the subsequent 18 months.
The Breakout Signals
The Historic Low: A Pivotal Turning Point
The price of Bitcoin has been consolidating above the 200-week moving average, a crucial support level that has served as a springboard for numerous bullish breaks in the past.
Breaking the Curse: A Golden Crossing
The price of Bitcoin has been trending upward, with the RSI indicator trending upward, indicating an ever-strengthening buying impulse.
The Case for a Golden Cross
The technical analysts often discuss the importance of a “Golden Cross,” where the short-term moving average (50-day MA) crosses above the long-term moving average (200-day MA). In Bitcoin’s case, this crucial juncture has already played out, with the price currently oscillating above the 200-day MA and inching closer to the 50-day MA.
The “W” Pattern: Breaking Down the Consolidation
A clear “W” pattern is forming – a classic bullish reversal signal.
Quantifying the Bullish Case
On-chain data shows whale portfolios holding Bitcoin above $5,000 has surged, indicating growing institutional support.
Supply dynamics have shifted, with previously hoarded Bitcoin supply beginning to trickle into the market, indicating increasing liquidity and a shift in investor sentiment.
Miners have been forced to adapt, leading to an increased focus on Bitcoin’s long-term fundamentals.
The Inevitability of a Rally
The likelihood of a 90% price rally is rooted in historical precedent and the confluence of the signals outlined above.
Fear and doubt often precede significant market turns. As the community becomes increasingly bearish, a contrarian rush of buyers may catalyze a rapid price increase.
The inevitability of a rally grows more and more plausible as the price continues to consolidate and technical indicators line up in favor of the bulls.
