BTC Price Flashes Buy Signal: Is This End of Bitcoin’s Bearish Trend?

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Highlights

  • BTC price has flashed a bullish reversal, signaling that the end of the bearish trend is nearing.
  • Bitcoin has also formed other chart patterns like a bullish pennant and a falling wedge.
  • These patterns mean that a strong bullish breakout may happen soon.

BTC price remains below the resistance level at $100,000 and the 50-day moving average as investors stay in the sidelines. However, Bitcoin has flashed a rare buy signal that could mark the end of the ongoing bearish trend. 

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BTC Price Flashes Rare Bullish Sign

Bitcoin may have more upside, ending the recent downward trend. According to Jelle, a popular anonymous crypto analyst on X, the coin has flashed a bullish pattern on the daily chart. He pointed to the moving average convergence and divergence (MACD) pattern that has formed a bullish crossover. 

The last time this crossover happened was on January 15 and the BTC price rose by 16% afterwards. It also formed the crossover in September when Bitcoin was trading at around $60,000. It staged a strong rally and peaked at its all-time high of $109,200.

Bitcoin Price Forecast
Bitcoin Price Forecast

In another X post, Jelle noted that Bitcoin had formed a pattern mirroring what it did between June and September last year. It made an initial swoop in June followed by the swoop low in August, and the retest swoop in September and then rallied. He has identified similar swoop levels during the ongoing consolidation.

Bitcoin Price Swoops
Bitcoin Price Swoops
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Bitcoin Price Has More Bullish Catalysts

Technicals show that Bitcoin price has more bullish catalysts that may push it higher from the ongoing consolidation. The first catalyst is that the coin has formed a falling wedge pattern, which comprises two falling and converging trendlines. A rebound usually happens when the two lines are about to converge, which is happening now. 

Bitcoin Price Daily Chart
Bitcoin Price Daily Chart

Most importantly, the longer-term chart points to a rebound since it has formed two rare and bullish patterns. First, it formed a cup and handle pattern between November 2021 and March last year. The handle section happened between March and November, leading to a strong bullish breakout to the all-time high of $109,200. 

As shown below, by measuring the cup’s depth and then measuring the same distance from the cup’s upper side, the Bitcoin price target is $123,000. 

Bitcoin Price Weekly Chart
Bitcoin Price Weekly Chart

This chart also shows that the BTC price has formed a bullish flag pattern, which has a tall vertical line and some consolidation. This pattern also leads to more gains.

The bullish Bitcoin price forecast will become invalid if the coin drops below the key support at $89,250, the lower side of the pennant’s triangle. 

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Frequently Asked Questions (FAQs)

1. Is the BTC price bearish trend about to end after Bitcoin flashed a buy signal?

There are signs that the BTC price will do well and exit the bear market after the MACD formed a bullish crossover. Bitcoin also has other bullish chart patterns.

2. Which other bullish patterns has Bitcoin done?

Bitcoin has also formed a bullish pennant pattern and a cup and handle, signaling more gains in the coming weeks.

3. How high can the BTC price get?

Bitcoin price may jump to $123,000 soon because of the cup and handle pattern.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.