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⚡Bitcoin Traders Eye New ATH🧑‍🔧

Croxroad

03 Jun 2024 — 4 min read

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♉ Bitcoin Price Rally Imminent

Bitcoin (BTC) could be preparing to repeat its ascent to all-time highs from March, on-chain analysis shows. In a post on X (formerly Twitter) on June 2, popular trader and commentator Alan Tardigrade drew a key comparison to BTC price action now and in mid-February. Bitcoin needed less than a month to hit new all-time highs earlier this year when a classic on-chain indicator flashes green. Now, the same setup is in the process of executing — with clear implications for BTC price strength. “Coincidence or Price action?” Tardigrade queried while presenting the phenomenon. “Bull Flag and MACD Bullish Cross at the same time. After a breakout to the Bull Flag, $BTC will surge higher.”

The metric in question is the moving average convergence divergence (MACD). On three-day timeframes, MACD, which measures trend strength, is busy building positive bars after a “red” period that began in early April. At the same time, BTC/USD is consolidating within a bull flag — and the last time it exited to the upside along with green MACD, new all-time highs required just a matter of weeks. The three-day MACD has long been on the radar for market observers tracking the current Bitcoin bull market. In late December, data from Cointelegraph Markets Pro and TradingView confirms, a trip back into “red” territory preceded the turbulence around the debut of the United States’ spot Bitcoin exchange-traded funds, or ETFs.

Tardigrade adds to the varied opinions over the current sideways BTC price landscape. Now consolidating below the March highs for nearly three months, some warn that Bitcoin will continue to stay range bound for weeks or more. However, this has not stopped sky-high BTC price predictions from making a return, among them a $150,000 target for 2024 by research firm Fundstrat Global Advisors. June, meanwhile, has traders eyeing $85,000 or more. Consensus nonetheless agrees that the most “parabolic” stage of the bull run has not yet entered.

⚠️ Bitcoin's Battle Against Fiat

In a recent tweet on the social media platform X, formerly Twitter, seasoned analyst Peter Brandt suggested that Bitcoin (BTC) price could be due for a massive uptrend, drawing comparisons between the current BTC consolidation and the Stagflation Crisis of the 1970s. Brandt's analysis highlights the similarities between Bitcoin's price action against the US Money Stock and the economic conditions of the past, suggesting that the devaluation of fiat currencies could propel Bitcoin. He argues that the eventual destruction of fiat currency units, such as the USD, is analogous to the economic turmoil experienced during the 1970s, which could lead to a significant increase in Bitcoin's value.

Brandt's comparison uses BTC against the total US Money Stock rather than the stock market, providing context to the massive expansion of the money supply and unprecedented monetary policies implemented by central banks in response to the COVID-19 pandemic. This perspective highlights how both events, despite being far apart in time, have had similar devaluing effects on fiat currencies. The 1970s stagflation demonstrated the fragility and potential for devaluation of fiat currencies in the face of economic turmoil and misguided policies. In contrast, today's economic landscape includes Bitcoin, a currency with a fixed and limited supply that could emerge as a viable alternative to fiat currencies and a hedge against inflation.

According to Brandt, if history rhymes, Bitcoin's market value could ascend rapidly, much like it did post-1970s stagflation. This aligns with Bitcoin’s core argument, the "destruction of fiat currencies," and supports the potential for BTC to act as a better alternative to traditional fiat currencies. The presence of Bitcoin, already recognized by institutions and evidenced by recent regulatory developments approving multiple spot crypto ETFs, underscores its growing legitimacy. While the long-term target for Bitcoin price remains uncertain, with forecasts ranging from $100,000 to $1 million per BTC, the comparison to historical economic conditions suggests that significant growth could be on the horizon.

🐢 Terahash

A unit of measurement representing the rate at which a computer or network can perform one trillion hash calculations per second. This metric is crucial in cryptocurrency mining, indicating the speed and efficiency of the mining hardware in solving complex mathematical problems to validate transactions and secure the blockchain.