As Bitcoin (BTC) continues to trade within the familiar territory below $30,000, investors are searching for potential signals that could indicate a forthcoming rally in the coming weeks. Analysts have noted that the maiden cryptocurrency is teetering on the edge of a potential breakout following the emergence of crucial patterns.
In particular, crypto analyst, CryptoCon, in an X post on August 12, observed that a Bitcoin rally might be looming on the horizon. This sentiment arises from the manifestation of a significant signal known as the “Monthly TD Sequential Golden 7.”
This signal, according to CryptoCon, serves as the “gatekeeper to the bull run,” and its presence is seen as a promising indicator of an impending bullish trend in the Bitcoin market.
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According to his analysis, the signal’s absence in 2019 led to a prolonged sideways movement of the cryptocurrency, frustrating investors and stalling the emergence of a full-fledged bull market.
“The Bitcoin Golden 7 is completely locked in on the Monthly TD Sequential. This one signal is the gatekeeper to the bull run, its nonoccurrence during 2019 sparked a vicious mid-cycle sideways grind for 1 year. The real bull market is coming,” he said.
This sentiment was echoed in CryptoCon’s another post on July 26, where he explained, that no Bitcoin bull market has ever occurred without the Monthly TD Sequential Golden 7.
“No Bitcoin bull market has ever taken place without one important signal…The Monthly TD Sequential Golden 7. Ever wonder why 2019 failed to produce a fruitful bull market and caused Bitcoin to go sideways for over a year? This is it,” he said.
TD Sequential indicator, which is a technical analysis tool used to assess the potential trend reversals and continuation patterns in financial markets, including the cryptocurrency market. Created by market analyst Tom DeMark, the TD Sequential indicator aims to identify points at which an asset’s price may be due for a change in direction.
Signs of possible market rally
It is worth noting that as Bitcoin continues to consolidate, there is growing optimism that the asset might rally in the near future. Notably, the upcoming halving event slated for 2024 is viewed as a possible catalyst for a potential rally.
Amid this bullish anticipation, the number of Bitcoin long-term ‘HODLer’ supply hit an all-time high, as reported by Finbold on August 10. This statistic reflects a steadfast conviction in the lasting value of Bitcoin, as experienced holders persist in demonstrating their trust in its future potential.
At the same time, as of August 8, the count of addresses possessing a minimum of one Bitcoin surged to a peak of 1,013,414, coinciding with escalating anticipations of an upswing. Additionally, the expansion of the Bitcoin community is underscored by another remarkable milestone where a record 4,436,238 addresses now hold at least 0.1 BTC.
Bitcoin price analysis
At the time of press, Bitcoin was valued at $29,380. Over the past seven days, the maiden cryptocurrency has seen minor gains of approximately 1%.
Elsewhere, Bitcoin technical analysis remains dominated by a sense of neutrality. A summary of the one-day indicators retrieved from TradingView suggests a ‘neutral’ sentiment score of 8, mirroring the sentiment of oscillators at 7. The evaluation of moving averages leans towards a ‘sell’ sentiment, registering at 6.
Amidst the anticipation of a potential bull run, it’s worth noting that Bitcoin’s price trajectory will also be influenced by factors beyond the cryptocurrency market, such as microeconomic elements, including inflation.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
