As Bitcoin’s (BTC) price continues to grapple with uncertainty regarding its next movement, the market remains uncertain whether the asset will experience an upward or downward momentum. Amidst this uncertainty, historical price patterns suggest the potential for the asset to rally by over 90% from its current value by the end of the year.
In this line, an analysis posted on TradingView by TradingShot on August 25 suggested that Bitcoin could reach a value of $50,000 by the conclusion of 2023. The analysis centers around the moving average convergence divergence (MACD) bullish cross that took place in the one-month timeframe around two months ago. This cross sheds light on historical parallels that might indicate a significant rally in the future.
According to the analyst, the pattern mirrors a historical context dating back to 2014, identifying three prior instances when the one-month MACD formed a bullish cross. On these occasions, the price action was notable for hitting the 0.786 Fibonacci retracement level shortly before or after the Bullish Cross, except for the strange June 2019 period during the Libra hype.
Furthermore, the analyst highlighted the symmetrical support level derived from the last lower high of the bear cycle. This support level has demonstrated resilience by consistently closing all 1-month candles above it, barring the irregular disruption due to the pandemic-inspired flash crash in March 2020.
“This is the position that the recent price decline has brought us to, testing that Symmetrical Support, which has held twice already in June and May 2023. The situation is more like the December 2015 1M MACD Bullish Cross, which took 6 months until it reached the 0.786 Fibonacci level. This time range is completed in 4 months, which means that by December 2023, BTC can reach the 0.786 Fib, which is at $50000,” he said.
Bitcoin price remains in consolidation
However, in the present instance, this time frame appears to be condensed, potentially culminating in four months. This suggests that Bitcoin could possibly reach the 0.786 Fibonacci retracement level at $50,000 by December 2023.
Indeed, if this pattern repeats, it will relieve the crypto community, especially considering that Bitcoin has predominantly traded below the $30,000 mark in recent times. It’s worth noting that market observers believe Bitcoin is poised to reach another high, with catalysts such as the upcoming halving event and the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF).
At the same time, as Bitcoin trades in a consolidated phase, there seems to be increasing demand for the maiden cryptocurrency. As reported by Finbold, over the past 12 months, there has been an uptick in demand for the keyword ‘buy Bitcoin’ on Google Trends.
Bitcoin price analysis
By press time, Bitcoin was trading at $26,067, having undergone a 0.21% rise in the last 24 hours. Over the past week, Bitcoin’s performance has been characterized by consolidation, with a minor decrease of nearly 0.3%.
From a technical analysis standpoint, the primary sentiment surrounding Bitcoin remains bearish. An overview of the one-day indicators suggests a ‘sell’ stance at 14, while the moving averages advocate a ‘strong sell’ position at 13. Meanwhile, the oscillators stand neutral at 7.
Overall, the ability of Bitcoin to regain the $50,000 mark will depend on other elements, such as macroeconomic factors, including inflation and interest rates.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.