The Last Time Bitcoin Saw This Buying Signal It Surged 80%
- Bitcoin (BTC) has seen a strong rally since the 9,800 USD lows witnessed in September.
- At the time of publishing the key cryptocurrency was trading at 11,400 USD.
- Many believe that this could just be a bear market rebound that will end up with a reversion back to the lows.
- A vital technical indicator implies that this is not the case and in fact is a real breakout.
- It shows that if BTC goes above 11,500 USD soon, it will form a buy signal of major importance.
- The last time we saw this buy signal was in April. Following this, we saw an 80% rally seeing BTC go from 7,000 to 12,500 USD in a matter of months.
Is BTC on the Verge of a Rally?
BTC may be on the surge of a rally taking it even higher if it is able to retake 11,500 USD over the next few months.
One expert recently shared the chart below, saying that BTC is running up against a key technical level at present. The chart indicates that BTC is on the verge of passing above a vital pivot level, that held as support on numerous occasions during rallies earlier this year.
If BTC is able to move above 11,500 USD point, the indicator will become a “buy” signal previously seen just before the 80% rally from April to August.
BTC’s price chart since February with a level analysis.
Fundamental Patterns Agree.
The fundamental patterns agree with the positive indicated by the chart above.
Glassnode, a blockchain analytics firm, recently revealed that the number of active BTC whales (wallets that hold more than a 1,000 coins) went over 1,800. The data shows that this is the highest number of active whales we have seen since the middle of the 2017 rally:
“The number of #Bitcoin whales (entities holding ≥ 1K BTC) has been on an upwards trend for the past months. An indication that more high-net-worth individuals are entering the space to invest in Bitcoin in expectation of USD/BTC price appreciation.”
Chart of BTC’s macro price action and the number of active whales.
Data from Coin Metrics likewise shows that there is a number of patterns forming currently that we last saw at the beginning of the last major rally in late 2016 and early 2017. One example is BTC’s Realized Cap which has been consistently increasing as it did prior to the 2017 bull market take off. If it maintains this pattern as it did in 2017, 2021 could be a fascinating year.
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