• 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

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

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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP