Key Points
- Bitcoin (BTC) could be gearing up to replicate its March all-time highs, according to on-chain analysis.
- The Moving Average Convergence Divergence (MACD) indicator and a bull flag pattern suggest potential price strength for BTC.
Bitcoin’s price action now mirrors its mid-February performance, hinting at a possible repeat of its record-breaking highs from March, as per on-chain data analysis.
On-Chain Metric Echoing Previous Run-Up
Earlier this year, Bitcoin required less than a month to reach new all-time highs when a key on-chain indicator turned green. The same pattern appears to be unfolding currently, implying potential price strength for Bitcoin.
The indicator in question is the Moving Average Convergence Divergence (MACD). On three-day timeframes, the MACD, a measure of trend strength, is forming positive bars following a “red” period that started in early April.
At the same time, Bitcoin’s price is consolidating within a bull flag pattern. The last time this pattern coincided with green MACD bars, Bitcoin reached new all-time highs within a few weeks.
Market Observations and Predictions
The three-day MACD has been closely watched by market observers tracking the ongoing Bitcoin bull market. In late December, a return to “red” territory was followed by market turbulence around the introduction of the United States’ spot Bitcoin exchange-traded funds (ETFs).
Despite Bitcoin’s price consolidation below the March highs for nearly three months, some analysts warn that Bitcoin will continue to remain rangebound for weeks or more. However, this has not deterred lofty Bitcoin price predictions, including a target of $150,000 for 2024 by research firm Fundstrat Global Advisors.
The consensus among market observers is that the most “parabolic” phase of the bull run has not yet begun.
