Amid Bitcoin’s current gradual recovery in price, attention has been drawn towards the asset as it prepares to be on the verge of closing its seventh consecutive monthly candle above the all-time high (ATH) of 2021.
Recently, renowned crypto analyst Moustache took to X highlight This key milestone highlights the importance of trading on higher timeframes.
Moustache believes that the fact Bitcoin holds above its previous ATH each month, is a sign of strong support. This could indicate continued upward momentum shortly.
Is Bitcoin Building Momentum For A Big Move?
Mustache’s analysis noted, “Can everyone see what’s happening here? BTC is about to close its SEVENTH monthly candle above the ATH of 2021. The higher the timeframe, the stronger the support. That’s bullish [to be honest].”
The importance of the long-term levels of support is highlighted in this statement. In trading, when assets consistently close above their previous peak in higher timeframes it is often an indication that a market formation has begun. solid foundation for future growth.
Bitcoin has a history of exhibiting this behavior. strong price movements Following extended periods for consolidation and support building.
Analysts have also noted that Bitcoin’s continued support over its previous ATH was a good sign. Another technical indicator is the Bollinger band width percentile (BBWP).
The BBWP indicator signals a 200% rally ahead
Recently, Moustache was featured in a post. pointed out The BBWP of Bitcoin’s 2W chart indicates that blue bars are emerging, a very rare occurrence in Bitcoin’s long history.
It is a technical tool that measures the Bollinger Bands. volatility indicators that reflect the range of an asset’s price movement. The blue bars of the BBWP show a period with low volatility that often precedes large price fluctuations.
Moustache revealed the significance of this signal. He said that BTC experienced a nearly 200% increase in value the last time BBWP indicated multiple blue bars.
“Incidentally, this is only the second time we’ve seen blue bars in the BBWP. Moustache said that this had never been done before. The historical patterns suggest that Bitcoin is on the verge of a significant price move. If the pattern continues, there could be big gains.
The BBWP shows low volatility which aligns well with the notion that prices often surge following periods calm. The blue bars indicate that the Bitcoin market is currently experiencing a low level of volatility. This may set the stage for an increase in price. significant price breakout.
Chart created by TradingView, DALLE.
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Source: www.newsbtc.com
