All eyes are on bitcoin at the moment following its surprise 5% jump on Monday’s market. BTC hit $46.8k on Sunday’s eve, but by the early hours of Monday, it surpassed the $47k mark. A new signal on charts suggests that BTC could hit another bullish run that could take it beyond $50k as predicted by experts.
Based on a metric from the Golden Ratio Multiplier, BTC has reclaimed a crucial support level that could influence its price action this year. Bitcoin has been overwhelmingly poor in the market, trading red for most of 2021. The breakout, coupled with the 200 moving DMA could be a positive signal that the flagship coin could maintain bullishness throughout the remaining year.
GRM Suggests BTC Has Beaten Mini Slump
GRM is used to observe BTC price action in the long-term, whether the price growth or downtrend correlates to the coin’s maturity based on use. It uses a 350-DMA and Fibonacci sequence to predict the trendline.
Analyst and creator of the tool Philip Swift, GRM is efficient because it shows if the market is over-leveraged or not based on adoption and cycles. The metric says that BTC has declined below the DMA in three years. This is proof the cryptocurrency is returning to its price action.
Following the Covid-hit March in 2020, BTC recorded the longest trendline below the DMA. This year they beat it by 3:2. GRM also predicts the next BTC market cycle, with Swift saying that the next top would be three times the DMA, judging by the Fibonacci pattern in the last nine years.
Bull Divided Over MAs
TradingView data explains that two MAs – the 21 and 50-week are struggling to provide solid resistance support for BTC. Prominent trader Rekt Capital said bitcoin could hit a new all-time high, noting that the flagship coin has performed above the 21-week EMA in situations that the price rises.
Many experts have said a surge in the price above $48k could create a path for the coin to attain a new ATH. Earlier this week, Nunya Bizniz said the next stop for the crypto could be $52k, noting that BTC has broken free from the bearish form. Another analyst Yoddha said bitcoin could retrace to test the breakout or push higher till it gets to $52k.
Traders and investors are excited by the potential of Bitcoin. Judging by the sentiment surrounding BTC, dark days could be over. Traders eagerly await how the leading cryptocurrency will pan out in the next quarter.
