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With the current gradual recovery in Bitcoin price, attention is turning towards the asset as it prepares to close its seventh consecutive monthly candle above the 2021 all-time high (ATH).
Popular cryptocurrency analyst Mustache recently took to X to… Spotlight This important achievement emphasizes the importance of higher time frames in trading.
According to Mustache, the fact that Bitcoin is holding above its previous all-time high every month is a strong indicator of support, which could indicate a continuation. upward momentum almost.
Is Bitcoin Gaining the Momentum for a Big Move?
Mustache analysis noted, “Can everyone see what’s going on here? Bitcoin is about to close its 7th monthly candle above its 2021 all-time high. The higher the time frame, the stronger the support. This is bullish.” [to be honest]”.”
This statement highlights the importance of long-term support levels in his Bitcoin forecast. It is worth noting that in trading, when an asset consistently closes above a previous peak on higher time frames, it often indicates that the market is forming a A solid foundation for future growth.
This observation is particularly relevant to Bitcoin, which has historically shown: Strong price movements After long periods of consolidation and building support.
While Bitcoin’s sustained support above its previous all-time high is a positive sign, there is another technical indicator that the same analysts also highlighted: the Bollinger Band Width Percentage (BBWP).
BBWP Index Points to 200% Upside
In a recent post, Sharpe He pointed out The BBWP indicator on the 2-week (2W) chart of Bitcoin is showing blue bars, a rare event that has only been seen once in Bitcoin’s history.
BBWP is a tool used in technical analysis to measure the width of the Bollinger Bands, which are Volatility indicators Reflects the range of price movement of the asset. Blue bars in BBWP indicate a period of low volatility, which often precedes large price swings.
Moustache explained the implications of this signal, revealing that the last time BBWP pointed to multiple blue bars on BTC’s 2W chart, BTC saw an upside move of almost 200%.
“By the way, this is only the second time we’ve seen blue bars on the Bitcoin BTC Index. This has never happened before in history,” Moustach 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 continues.
It is worth noting that the Bitcoin BTC Index’s low volatility signal is consistent with the concept that markets often see higher price action after periods of calm. In the case of Bitcoin, the current environment of low volatility, as indicated by the blue bars, may be setting the stage for sharp swings. Big price hike.
Featured image created using DALL-E, chart from TradingView
