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Rare technical analysis breakthroughs often foretell significant price movements, and we are about to witness one such event. Although Bitcoin’s price continues to challenge the $47,000 mark, we are seeing fluctuations due to speculative selling. But what does the technical front look like when there is such a flow of news on the fundamental side? What could be the results of an event that has not occurred since 2016?
Bitcoin Price and Historical Data
An event not seen in the past 8 years by cryptocurrency investors is about to occur again, stirring excitement. This signal, which previously heralded the king cryptocurrency’s rush to the $20,000 target, was identified by an analyst known by the pseudonym Moustache.
In his latest market commentary published today, Moustache focuses on BTC price’s moving average crossover and the potential rally. There is roughly 24 hours left for the United States to approve its first spot Bitcoin exchange-traded fund (ETF).
Markets are volatile and excitement is high. As Moustache points out, the BTC price is attempting to cross the 21-period exponential moving average (EMA) over the 50-period simple moving average (SMA) in three-week time frames.
This crossover, a sign of strong short-term price performance, was last seen in 2016 and led to BTC reaching its all-time high of $20,000 in December 2017.
The analyst also wrote;
“In addition, the ‘buy signal’ in the super indicator. Pay attention to rare signals.”
Will Bitcoin Fall?
The king cryptocurrency is currently at April 2022 levels, and there are plenty of signals, including RSI and Bollinger Bands, supporting the continuation of the price rise. However, some are expecting a decline, mainly motivated by the expectation that the SEC will reject the spot Bitcoin ETF, stating “we fought enough, but Bitcoin is not suitable for a spot ETF.”
Among the experts expecting a downturn is Il Capo of Crypto, who had almost every prediction come true in the second half of 2022 but was clearly mistaken in the 2023-2024 period, incurring massive losses. In his latest assessment, Capo wrote;
“We have an interesting week ahead. ETF news should be published soon. As announced these days, I expect the market to pump first. BTC will see 48-50 thousand, ETH 2500-2600 dollars. A few days later, the market should reach a very important local peak. That’s when I’ll start opening swing short positions targeting new lows.”
The focus of the analyst is on the $30,000 region for BTC. Experts like Capo had accumulated excessive short positions assuming the Binance case would lead to disaster, but the settlement at the end of November caught them off guard.
