Two weeks ago I mentioned that Bitcoin ( BTCUSD ) was trading ‘perhaps the most critical week’ of recent times, mainly due to the fact that the price was testing the 1W MA50 (blue trend-line), which was the Resistance for 12 weeks straight, as every week closed below it:

Well not only did the price close a 1W candle above the 1W MA50, but at the same time, the 1W LMACD made a Bullish Cross! That is the focal point of today’s study as all previous LMACD Bullish Crosses on the 1W time-frame have delivered major rallies in recent years. The last 1W LMACD Bullish Cross for reference was on the August 09 2021 1W candle.

Another element I want to add, is the similarities of the rather neutral price action in 2021 – date with the phase of 2019 – early 2020. First, in terms on LMACD, there are clear legs that draw a similar pattern. A key characteristic is that the Support then was the 1W MA200 (orange trend-line) while now is the 1W MA100 (green trend-line). This could mean that this time the rally may be more aggressive.

A rather radical illustration can be made on the Fibonacci Channel scale using the extensions. Can it go as high as the 300k – 350k USD in such short period of time? That’s has a big question-mark besides it and it would require massive bullish fundamentals, but they could be just around the corner. What we should keep from the current study is that the break above the 1W MA50 and the 1W LMACD Bullish Cross, can be enough to take Bitcoin past its previous All Time Highs.

Do you agree? Feel free to share your work and let me know in the comments section below!

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