Fear still pervades the crypto market. Bitcoin (BTC) has managed to stay above the important $58,000, but sentiment is still poor. However, certain macro indicators have now signalled that a big change is coming. Is Bitcoin about to do the unexpected and head back to the all-time high?
A long period of consolidation was necessary
When Bitcoin started its wild ride upwards in September 2023, not many were expecting the eventual 196% gain, equivalent to $49,000 in the space of around 180 days. This was a huge surge, only interrupted by one short correction of 21%.
Such a massive movement would need a long period of consolidation in order for the market to absorb it. 24 weeks after reaching the all-time high at $73,800, certain indicators are signalling that this could be the time that $BTC rises out of its current boring sideways and downwards price movement, and starts on the next stage of the bull market.
$BTC wakes up with a bang
Source: TradingView
In the short term time frame of the hourly, the $BTC price has woken up on Tuesday with a bang. The price pierced through the top of the channel and was rejected at the $61,000 resistance. It now remains to be seen whether it will come back to test the breakout at around $60,000, before going higher.
Weekly momentum indicator shaping for an upside signal
Source: TradingView
However, it’s on the more macro time frames that the clue as to what is potentially coming for Bitcoin, is apparent. While it can be seen that the $58,000 support is holding strong, a glance down at the stochastic RSI at the bottom of the chart shows that the indicator lines are starting to shape up towards a cross.
The blue (fast) indicator line has turned upward, and is now shaping to cross back over the orange (slow) indicator line. If the crossover takes place, this would signal a huge amount of upside momentum would be coming into $BTC. On its own, this has what it takes to send $BTC back to the all-time high, and potentially beyond.
2-week stochastic RSI projecting similar signal
Source: TradingView
That said, zooming further out into the 2-week chart, a similar crossover on the stochastic RSI appears to be taking place here as well. If these two indicator lines can continue to rise, and pass through the 20 level, the resulting upside momentum would be truly huge.
For the $BTC price, it can be seen that if the $61,000 resistance can be overcome, and the next one at $63,000, then $69,000 will beckon. This is where all the candle bodies on the 2-week chart have their top, plus the wick which was the top for the 2021/2022 bull market.
$100,000 Bitcoin?
It’s definitely getting ahead of oneself to think this far ahead, but if these stochastic crosses do take place, not just an all-time high, but a $100,000 Bitcoin can be the eventual result.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/08/is-bitcoin-btc-about-to-do-the-unexpected