An analyst who continues to gain a following with macro cryptocurrencies believes that Bitcoin (BTC) is almost ready to enter the parabolic stage of its market cycle.
The analyst, who goes by the name TechDev, tells his 490,300 followers on social media platform X that Bitcoin is producing technical signals that have preceded sharp gains in the past.
The trader shares a chart that shows Bitcoin broke out of the upper range of its Bollinger Bands in two months after spending about two years recovering from the bear market bottom.
Traders use Bollinger Bands to identify potential periods of rising volatility and determine whether an asset is overbought or oversold.
TechDev’s chart also suggests that these two signals were present during the 2016 and 2020 market cycles – just before BTC caused a parabolic rally.
“This is where things got exciting.”
Looking at BTC from a different perspective, TechDev says Bitcoin is in the early stages of a parabolic ascent based on the crypto king’s Logarithmic Moving Average Divergence (LMACD) indicator. The LMACD indicator is designed to identify changes in the trend, strength and momentum of an asset.
“Paying attention to high time frames (HTF) gives you the best chance of trading cycles.
$30,000 is not the limit as the HTF expansion is not over yet.
$50,000 was not the maximum amount since the HTF expansion was not yet completed.
$70,000 is not the limit as the HTF expansion is not over yet.
$90,000 is not the limit since the HTF expansion is not over yet.
And the expansion of HTF has not yet ended.”
Based on the trader’s chart, he appears to be suggesting that Bitcoin will not reach a cycle top until the LMACD on the two-month chart hits resistance at 0.12. BTC’s LMACD appears to be currently hovering at 0.04.
At the time of writing, Bitcoin is trading at $97,274.
Generated image: Midjourney
