bitcoin (btc), the market's largest cryptocurrency by trading volume and capitalization, has embarked on a renewed bullish trendrecovering previously lost territories and surpassing resistance levels, igniting optimism among investors.
Currently trading just below its 25-month high of $49,000 to $47,900, bitcoin has seen a notable price rise of over 6% in 24 hours and a significant 11% rise in the last seven days.
Mapping btc's Path Amid Pre-Halving Rally
However, amid the market enthusiasm, it is crucial to consider historical trends and their potential impact on bitcoin's trajectory until the next halving event. Rekt Capital expert and market analyst reflexes two notable historical patterns:
First of all, it seems that the “pre-halving recovery” phase is beginning. This phase refers to a period where bitcoin experiences an increase in price before the halving event occurs.
Second, historical data reveals that bitcoin has struggled to overcome diagonal macro resistance ahead of the halving, which Rekt places at $47,000. Additionally, it has struggled to overcome its four-year cycle resistance, which is approximately $46,000 in the current cycle.
It is worth noting that even though the price has broken through these resistance levels, a consolidation or continuation of the uptrend should be seen as a recoil could take place and leave btc price trapped between these resistances.
Given these historical trends, it is interesting to explore how bitcoin could potentially reconcile these patterns. Rekt Capital offers insight into a possible path bitcoin could take:
During the pre-halving recovery phase, bitcoin may produce a limited rise, resulting in a bullish fuse at the end of February. This pattern has been observed in previous months and in 2019.
After this, bitcoin could establish another range to higher price levels in March, which could allow altcoin rallies to take center stage. Finally, a few weeks before the halving event, bitcoin could experience a pullback, creating a pre-halving pullback.
This proposed path suggests that bitcoin could overcome Macro Diagonal resistance with a bullish wick, but remain below it in terms of month-end monthly candle closes during this gradually concluding pre-halving period.
bitcoin Bull Run Indicator Flashing Buy Signal
crypto analyst Ali Martinez has added to the growing bullish sentiment surrounding bitcoin by highlighting a key indicator that suggests a possible bullish move.
According For Martínez, the Super Trend indicator showed a buy signal on the monthly btc chart. This tool is known for its accuracy in predicting bullish trends in the bitcoin markets.
The indicator's history underlines the importance of this buy signal. Martínez notes that Super Trend has issued four buy signals since bitcoin's inception, and all four have been validated, resulting in substantial gains. These gains amount to an impressive 169,172%, 9,900%, 3,680%, and 828%, respectively.
However, amid the bullish outlook, Martínez also highlights a potential strategy that could soon affect the price of bitcoin.
According According to the bitcoin liquidation heatmap, a scenario is developing where liquidity hunters could drive the price of bitcoin down to $45,810. The intention behind this measure would be to provoke liquidations for a substantial amount of 54.73 million dollars.
It is important to understand that liquidity hunters aim to exploit price movements to trigger forced liquidations among overleveraged traders. By strategically lowering the priceThey can force these traders to sell their positions, resulting in cascading liquidations that potentially amplify downward price movements.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
