Bitcoin (BTC) could be poised to repeat its ascent to all-time highs since March, according to on-chain analysis.
In an article on X (formerly Twitter) on June 2, popular trader and commentator Alan Tardigrad made a key comparison with Bitcoin’s price action today and in mid-February.
Bitcoin’s On-Chain Metric Returns to All-Time High
Bitcoin took less than a month to reach all-time highs earlier this year when a classic on-chain indicator flashed green.
Today, the same pattern is in play – with clear implications for Bitcoin price strength.
“Coincidence or price action??” asked the tardigrade, demonstrating this phenomenon.
“Bullish flag and bullish crossover for MACD at the same time. After the bull flag breaks, the price of BTC will increase.
The metric in question is moving average convergence-divergence (MACD). On three-day time frames, the MACD, which measures trend strength, is building positive bars after the “red” period, which began in early April.
At the same time, BTC/USD is consolidating within the bull flag – and the last time it broke out higher with the green MACD, it took a few weeks to reach new all-time highs.
The three-day MACD is on the radar of market observers tracking the current Bitcoin bull market.
In late December, data from Cointelegraph Markets Pro and TradingView confirmed that the return to the “red” zone preceded the unrest surrounding the emergence of Bitcoin exchange-traded funds (ETFs) in the United States.
Don’t bother with BTC price consolidation
Tardigrade adds to the various opinions on the current BTC price sideways landscape.
Related: Bitcoin Reaches Best May Levels Since 2019 Despite “Predatory” 3% Drop in BTC Prices
Bitcoin has now been holding below its March highs for about three months, and some are warning that Bitcoin will continue to stay in this range for weeks or longer.
That hasn’t stopped Bitcoin’s high price predictions from yielding, including a $150,000 target for 2024 by research firm Fundstrat Global Advisors.
Meanwhile, in June, traders are looking at $85,000 or more.
However, the consensus is that the most “parabolic” phase of the upward trajectory has not yet entered.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
