Following a period of price escalation, Bitcoin [BTC] has once more shifted to a bearish stance over the past 24 hours. Nonetheless, there is potential for a reversal in the near future based on a historical pattern that BTC seems to be following. If history repeats itself, market participants could experience a substantial price movement.
Bitcoin’s Crucial Indicator Emerges Once More
Earlier, it was reported that Bitcoin surpassed the $64k mark a few days back, only to retrace shortly thereafter. The leading cryptocurrency observed a minor 2% decline in price in the last 24 hours, settling at $63,117.53.
During this period, a well-known crypto analyst named Axel shared an intriguing observation via a tweet. According to the tweet, volatility has been steadily reducing over the past six months, with a notable signal flashing on the chart.
Notably, this signal has only appeared for the 5th time in Bitcoin’s history.
Historically, similar alerts emerged in 2015, 2016, 2017, and 2023 before resurfacing in 2024. Each time this alert emerged, Bitcoin’s price witnessed significant upward movement.
Therefore, if past trends hold, investors may anticipate the start of a fresh bullish phase for Bitcoin in the near future.
Is Bitcoin Poised for a Price Surge?
Considering historical patterns pointing towards an upcoming bull rally, an examination of Bitcoin’s on-chain metrics was conducted by CryptoCrypto to determine if they also support a potential price upswing. An analysis of Glassnode’s data revealed that Bitcoin’s price recently surpassed the potential market bottom of $61.8k.
Based on the Pi Cycle Top indicator’s signals, the imminent bull run could potentially propel Bitcoin towards its projected market peak of $109k in the upcoming weeks or months.
While buying pressure for the cryptocurrency remains strong, indicating a potential price increase, not all indicators are favorable for Bitcoin.
Analysis of CryptoQuant’s data revealed that Bitcoin’s aSORP indicator had turned red, suggesting an increase in selling among investors. In the context of a bull market, this could signal a possible market peak.
Further analysis of Bitcoin’s daily chart revealed that the cryptocurrency faced resistance around the $64.1k mark. Additionally, Bitcoin’s price had reached the upper boundary of the Bollinger Bands, suggesting a potential price correction.
In the event of a correction, Bitcoin could retreat to $62k. Conversely, if a bull rally ensues, breaching the $64k-$65k range will be pivotal, as liquidation levels are likely to surge at that point.
Typically, a spike in liquidations leads to short-term price adjustments.