- Bitcoin price shows strong buying momentum, indicating a revisit to its previous all-time high at $42,000.
- BTC's on-chain transaction data shows an increase in whale activity at the current price levels.
- Pi Cycle Top indicator warns about the probability of market top.
Bitcoin price has seen a strong surge since it broke out of a descending triangle pattern on February 2. While it looks poised for higher highs, there is a slight chance a market top is near.
Bitcoin price targets new all-time highs
The bulls continue in control of Bitcoin price, pushing it to higher highs. The recent break out of a descending triangle on the daily chart suggests that BTC could rise towards $45,000.
Such an optimistic scenario is determined by measuring the height of the triangle's y-axis and adding it to the breakout point.
BTC/USDT 1-day chart
According to trading veteran Peter Brandt, FOMO will likely kick in after Bitcoin price slices through its recent all-time high. Under such circumstances, BTC could rise even higher than the descending triangle's target of $45,000.
"I am confident Bitcoin will go MUCH MUCH MUCH higher over time. I believe the bullish BTC narrative to be true. I also am confident that the period since the January 8 high is part of or all of a consolidation poised for another upward thrust," said Brandt
Despite the high probability of higher highs on the horizon, Brandt believes that a daily close below $35,450 would invalidate the bullish outlook. Interestingly enough, some technical indexes add credence to this probability.
On the vicinity of a market top
The Pi Cycle Top indicator by Philip Swift suggests that a market top might be near. The indicator consists of the 350 1-day moving average with a standard deviation of 2, and a simple 111 1-day moving average plotted against Bitcoin price chart.
Theoretically, a crossover of the 111 one-day moving average above the 350 one-day moving average has accurately forecasted the end of Bitcoin's bullish cycles over the past nine years.
Bitcoin Pi Cycle Top indicator chart
This technical indicator anticipated that Bitcoin price was bound for a steep correction in April 2013 when it rose to a high of $230. The crossover came just a few days before the actual market top when BTC was trading at $143.
Similarly, when Bitcoin topped in December 2013 at $1,135, the crossover between the 111 and 350 1-day moving averages was seen a day later. The end of the 2017 bull market was also forecasted by the Pi Cycle Top indicator exactly when Bitcoin peaked at a high of $19,640 in December of that year.
This time around, the two moving averages are converging towards each other, signaling that the top might be around the corner. The warning comes just as Bitcoin is about to retest its recent all-time high.
Market participants must be aware that a spike in selling pressure could create a double top pattern, leading to the end of the ongoing bullish cycle. But as the 40-years trading veteran said, only a decisive close below $34,450 will confirm the bearish outlook.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.