Amid the ongoing gradual recovery in bitcoin price, attention has been focused on the asset as it prepares to be on the verge of closing its seventh consecutive monthly candle above the 2021 all-time high (ATH).
Renowned cryptocurrency analyst Moustache recently brought x to x.com/el_crypto_prof/status/1826896003074556355″ target=”_blank”>stand out This key milestone highlights the importance of longer time frames in trading.
According to Moustache, the fact that bitcoin remains above its previous ATH every month is a strong indicator of support, which could signal continued upward momentum shortly.
Is bitcoin Gaining Momentum for a Big Move?
Mustache’s analysis noted: “Can everyone see what’s going on here? btc is about to close its 7TH monthly candle above the 2021 ATH. The higher the time frame, the stronger the support. That’s bullish (to be honest).”
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Bitcoin-set-for-200-rally-as-analysts-spot-rare-bullish.jpeg" alt="Chart shared by Moustache on x showing that bitcoin is on track to close above its 2021 peak. ” />
This statement highlights the importance of long-term support levels in his outlook on btc. In particular, in trading, when an asset consistently closes above a previous peak on higher time frames, it often indicates that the market is forming a solid foundation for future growth.
This observation is particularly relevant for bitcoin, which has historically exhibited strong price movements following extended periods of consolidation and support building.
While bitcoin's sustained support above its previous ATH is a positive sign, another technical indicator also highlighted by the same analysts: the Bollinger Band Width Percentile (BBWP).
BBWP indicator indicates a 200% rally ahead
In a recent post, Moustache x.com/el_crypto_prof/status/1826620713996091623″ target=”_blank”>pointed out that the BBWP on the bitcoin 2-week (2W) chart signals the appearance of blue bars, a rare phenomenon observed only once in bitcoin history.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/1724447726_563_Bitcoin-set-for-200-rally-as-analysts-spot-rare-bullish.jpeg" alt="bitcoin chart shared by Moustache on x showing the appearance of the blue bar.” />
BBWP is a tool used in technical analysis to measure the width of Bollinger Bands, which are volatility indicators that reflect the range of movement in an asset's price. Blue bars on the BBWP indicate a period of low volatility, which usually precedes significant price swings.
Moustache explained the implications of this signal, revealing that the last time the BBWP signaled multiple blue bars on btc’s 2W chart, btc experienced an upward move of almost 200%.
“By the way, this is only the second time we’ve seen blue bars on the BBWP. This has never happened before in history,” Moustache noted. This observation suggests that bitcoin could be on the cusp of a major price move, with the potential for significant gains if the historical pattern holds.
Notably, the BBWP’s indication of low volatility aligns with the concept that markets typically experience a sudden surge in price action after periods of calm. In the case of bitcoin, the current environment of moderate volatility, as indicated by the blue bars, may be setting the stage for a major price breakout.
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Featured image created with DALL-E, chart by TradingView
