Bitcoin Indicator That Preceded 750%+ Rallies Signals Once Again
Bitcoin’s price has been struggling to regain momentum, falling below $62,000 after briefly surpassing $63,000 on May 14. Traders are closely monitoring the price action of BTC, as it often sets the tone for the overall market sentiment.
Interestingly, a crypto analyst has identified a recurring indicator that has historically predicted massive price rallies for Bitcoin.
The indicator in question is known as the “Green Cross,” as highlighted by Nic Puckrin, CEO of Coin Bureau, in a recent X post.
The Green Cross is a technical indicator that indicates when the selling pressure on Bitcoin reaches a high level, which has historically been followed by significant rallies. This bullish signal tends to appear during extended periods when Bitcoin’s price remains below its all-time high, building up potential energy for a breakout.
This pattern was observed in 2013 and 2017, both times leading to substantial price surges after the activation of the indicator.
On March 4th, Bitcoin experienced another occurrence of the Green Cross, mirroring the conditions seen in previous bullish cycles. While past performance does not guarantee future results, the repetition of these patterns could attract buyers and serve as a bullish signal for the token.
In addition to the Green Cross indicator, there is another bullish technical setup called the “bull flag pattern” that could further support Bitcoin’s upward trajectory.
The bull flag pattern is formed when the price of a crypto token undergoes a sharp rise, creating the flagpole, followed by a consolidation phase, forming the flag. This pattern is commonly seen in assets that are in a strong uptrend.
During the consolidation phase, the price remains stable as buying pressure persists. Typically, a breakout from this phase triggers another significant uptrend.
To determine the potential price target of the breakout, traders add the length of the flagpole to the breakout price level.
According to technical analysis, if Bitcoin confirms the bullish technical pattern, its price could rally by over 84% to reach a theoretical price target of around $113,600.
Currently, Bitcoin’s price action is range-bound between the 0.618 Fibonacci resistance near $64,500 and the 0.382 Fibonacci support near $60,670. A breakout above or below these levels would likely determine Bitcoin’s near-term price action.