Bitcoin (BTC) is on the verge of a significant breakout that has historically preceded its all-time highs in 2017 and 2021, according to a recent analysis. The analysis, conducted by popular trader Jelle, highlights a key crossover on Bitcoin’s Pi Cycle Top indicator, which has consistently signaled major market tops for BTC price action.
The Pi Cycle Top indicator is a widely recognized tool for observing Bitcoin’s bull markets. It consists of two moving averages, and when the shorter-term average crosses the longer-term average, it signals a macro top. Currently, Bitcoin’s price is coiling beneath the indicator’s longer-term trendline, which is the 2X multiple of the 350-day moving average, currently at $76,000, as reported by on-chain analytics firm Glassnode.
Jelle emphasizes that once Bitcoin breaks the Pi Cycle moving average, it could lead to significant price movements. The consolidation of BTC/USD around its previous all-time highs of $69,000 has caused unease among some market participants. However, others, including Jelle, believe that this consolidation is a healthy behavior around a critical psychological level.
Similar consolidation periods have occurred in the past. In 2017 and 2020, Bitcoin consolidated at its all-time highs for 50 days and 2021 days, respectively. Currently, the consolidation period stands at 37 days, according to fellow trader Daan Crypto Trades.
Jelle maintains a near-term price target of over $80,000 for Bitcoin. He points to an ascending triangle pattern with a target of $82,000, highlighting the current market structure.
It’s important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research and analysis before making any investment decisions.