Bitcoin just regained a key price trend line

Bitcoin (BTC) price may be consolidating at the $47,000 level, but the longer timeframes show the importance of this week’s mini bull run.

According to the Golden Ratio Multiplier (GRM) metric, On March 27, the BTC/USD pair regained a key zone of support to secure further upside potential.

Bitcoin breaks out of the trendline descent that surpassed March 2020

The GRM is a long-term observation metric for bitcoin price action. It is used to determine whether Bitcoin’s price growth (or vice versa) in terms of adoption is disproportionate to its overall maturity as an asset.

Bitcoin just regained a key price trend line
Bitcoin just regained a key price trend line

This is done using a logarithmic scalecomposed of Bitcoin’s 350-day moving average (DMA) and Fibonacci sequences to obtain multiples of this trendline.

As well as, BTC/USD’s decline below the 350DMA is a now-conspicuous sign of a breakaway price move as the vast majority of days since mid-2019 have passed above it.

As Bitcoin matures and adoption spreads, the logarithmic tails become less steep.

“The Golden Ratio Multiplier is an effective tool as it can show when the market is likely to be oversized in the context of bitcoin acceptance curve growth and market cycles.”explained analyst Philip Swift, who created the tool in 2019.

For example, the March 2020 drop caused by COVID-19 had marked Bitcoin’s longest period below the 350DMA level in recent memory, but 2022 managed to surpass it by three to two months.

handle, The first three months of this year seem to be a clear exception to the rule when it comes to GRM.

Another use of GRM is, of course, associated with predicting Bitcoin market cycle highs. In 2019, Swift estimated that the next peak would be around three times the 350DMA.

“If this pattern of decreasing Fibonacci progression continues as it has over the past 9 years, the next market cycle top will come when price trades in the 3x 350DMA area,” he argued.

Graphic of the golden ratio multiplier. Source: LookIntoBitcoin

The weekly chart is shredding what would have been solid resistance

As Cointelegraph reported, In the mid-terms, Bitcoin is already making a statement when it comes to trendlines set throughout 2022.

Two MAs that provided resistance in the first quarter — the 21-week exponential MA and the 50-week MA — saw their first challenge this week, and the bulls are currently battling for them as new support.as shown by data from Cointelegraph Markets Pro and TradingView.

Both roughly divide Bitcoin’s current trading range, which has existed since early 2021, into two parts: the $28,000 floor and the $69,000 ceiling, respectively.

As popular trader and analyst Rekt Capital previously said, A move above it would give the BTC/USD pair a chance to make fresh all-time highs.

“BTC closes a weekly candle above the 21-week bull EMA as price finds its first uptrend since mid-July 2021,” added in one To update on this week’s topic.

1-week candlestick chart of the BTC/USD pair (Bitstamp) with the 21-week EMA and the 50-week EMA. Source: TradingView

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.

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