Bitcoin has been in a consolidation phase since its new peak above $73,000 in March. However, many experts in the crypto space are watching for potential signs of a breakout that could lead to a new all-time high (ATH).
For example, renowned crypto analyst Mags recently shared his thoughts on the outlook for Bitcoin, noting patterns that have emerged in the past and how they could impact the crypto asset’s future.
Bitcoin Consolidation Bullish Signals
According to Mags, Bitcoin’s current price action mirrors its behavior during last year’s consolidation period. He emphasized the importance of the moving average convergence divergence (MACD) indicator, a tool analysts use to assess momentum shifts.
#Bitcoin new ATH approaching?
The current consolidation is very similar to what happened last year, when Bitcoin remained range bound for several months.
The first bullish MACD cross gave a weak signal, triggering a short-term rally, but the price failed to break out of the range.… pic.twitter.com/09osi0GEfF
— Mags (@thescalpingpro) September 10, 2024
Mags pointed out that last year, the first bullish MACD crossover was followed by a short-term rally, but the price failed to break out of its range.
However, the second bullish MACD crossover resulted in a significant breakout and subsequent price surge. Mags believes that we could see the same scenario again, potentially setting the stage for a new ATH.
The analyst particularly noted:
We may see the same pattern again. The first signal was weak and created a short-term bottom, but the second one may lead to a real breakout and a new ATH.
$73,000 and up
While Mags used the MACD indicator to gauge how close a major rally in Bitcoin might be, another crypto analyst, Javon Marks, also recently shared his take on the cryptocurrency. However, his view was more related to the technical chart than the indicator.
According to Marx’s analysis, the Bitcoin price chart has formed a “hidden bullish divergence” in which the asset has been trading for several months. Marx noted that the target of this pattern is a Bitcoin rally to $73,729.79 and even a “significant continuation” after reaching that level.
The target of this #Bitcoin (BTC) pattern is at the level,
$73,729.79
and more than possibly a large continuation of the above.
Pattern – “Hidden Bullish Divergence”. https://t.co/y1LciVBNSI pic.twitter.com/IH0mppoo77
— JAVON⚡️MARKS (@JavonTM1) September 10, 2024
However, Bitcoin is still far from that target, suggesting that the asset still has a long way to go. In particular, the latest data shows that the asset is currently trading at $56,851 at the time of writing, up 2.6% in the last 24 hours.
Main image created with DALL-E, chart from TradingView
