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Bitcoin has done extremely well over the past month. Just over 30 days ago, the leading cryptocurrency was trading at $3,700 — 50% lower than it had been trading at the start of the previous day and 65% below the 2020 highs of $10,500. Now, BTC is at $7,200, nearly 100% higher than the bottom.
According to Josh Olszewicz — a crypto analyst at Brave New Coin — the recent price action is about to see BTC print a “once-a-quarter” buy signal.
Related Reading: Don’t Sleep on This Key Sign Showing Bitcoin Bottomed At $3,700
Crucial Indicator Predicts Bitcoin Has Room to Run
On April 19th, Josh Olszewicz shared the below chart, indicating that Bitcoin is about to cross above the Ichimoku Cloud for the first time in five weeks. This, he claimed, is a “once-a-quarter” buying signal, which is likely to see BTC rally even higher towards $8,000, $9,000, and beyond.
The importance of the Cloud should not go understated.
As can be seen on the left of the chart seen above, the Cloud acted as key resistance on the daily chart, with Bitcoin failing to surmount the technical level down to the dollar throughout September and October. This failure resulted in the 50% capitulation we saw from November to December 2018, during which Bitcoin fell from $6,200 to $3,100.
Previous moves on the daily above red Clouds also led to staggering bullish follow-throughs. In 2019, the move above the Cloud marked the start of a 250% rally from $4,000 to $14,000, and just this year, the move above the Cloud was followed by a 20% rally higher.
Historical precedent suggests that once Bitcoin firmly establishes the Cloud as support, the next full-blown bull phase is likely to begin.
Notably, Olszewicz did not make a specific prediction as to where Bitcoin will rally to once it decisively crosses above the indicator, but the analyst did go as far as to say:
“These [crosses] are trend-setting trade opportunities that are typically buy-and-hold [signals], not investment advice. It’s a very boring and very easy sign.”
Far From the Only Positive Sign
The Ichimoku Cloud is far from the only indicator suggesting Bitcoin is on the verge of being launched into a notable bull phase.
Per previous reports from NewsBTC, Bitcoin is now trading below its cost to mine 25 days out from the halving, as estimated by digital asset manager Charlies Edwards’ indicator. The last time this trend was seen in 2016, which proceeded a 2,700% rally to 20,000 in the 18 months that followed.
Crypto trader “Theta Seek” backed the cheery assertion, explaining that per his data, specific BTC miners have been “silently accumulating coins over the past six months.” Theta expects this trend to continue, saying that they believe miners will “continue to do so until well after the halving,” which could result in prices rapidly surmounting the $20,000 all-time high “quickly this year from the supply shock.”
Related Reading: Crypto Tidbits: Bitcoin Retakes $7,000, China’s CBDC Is Here, Wall Street Wants BTC & Ethereum
Photo by Dave on Unsplash
