This indicator hints Bitcoin’s next bull cycle phase ‘will be legendary’
This indicator hints Bitcoin’s next bull cycle phase ‘will be legendary’ 
Cryptocurrency Jul 20, 2024 Share
With Bitcoin’s (BTC) bull run seemingly on course, a crypto trading expert has highlighted that investors should prepare for further gains based on historical patterns.
According to the analyst with the pseudonym Mags, in an X post on July 19, Bitcoin’s historical price movements and technical indicators are aligning in a way that suggests a legendary rally is in the offing.
One of the key observations from Mags’ analysis is the recurring pattern of sideways movement following Bitcoin’s halving events. Notably, Bitcoin trades sideways after each halving for several months, characterized by relatively stable prices with minimal upward or downward movements.
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This sideways phase has historically been the final opportunity for investors to accumulate Bitcoin at lower prices before the onset of a major bull run.
Another critical aspect of Mags‘ analysis focuses on the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements. The RSI levels on the monthly chart have not yet reached the extreme levels (90+) observed in previous bull cycles.
Bitcoin price analysis chart. Source: Mags
The RSI is currently around 68.50, significantly below the peaks in past cycles, which often coincided with Bitcoin reaching new all-time highs. This suggests substantial room for growth before the market becomes overbought.
“Right now, the monthly RSI hasn’t reached extreme levels (90+) yet as seen in the past cycles. This suggests there’s still a lot of potential for Bitcoin to go higher. The next phase of this bull cycle will be legendary,” the analyst said.
The analyst noted that the current market conditions are ripe for a legendary bull run. The combination of the post-halving accumulation phase and the RSI levels indicating further potential for upward movement creates a promising outlook for Bitcoin’s price.
Bitcoin’s repeating patterns
Mags’ analysis mirrors another Bitcoin outlook by crypto analyst Michaël van de Poppe. In an X post on July 20, the analyst pointed out that Bitcoin is showing signs of repeating historical patterns, suggesting an imminent significant price movement.
Over the past several months, Poppe noted that Bitcoin has been in a consolidation phase characterized by relatively stable prices with minor fluctuations. In his view, this prolonged consolidation is a precursor to a major price impulse expected to occur within the next six to 12 months.
Historically, such consolidation phases in Bitcoin have often been followed by substantial upward price movements, which have surprised many investors.
#Bitcoin is repeating patterns.
It's consolidating for multiple months in a row, through which it's inevitable that a big new impulse will happen in the coming 6-12 months.
During these periods, people underestimate how high the markets will likely go. pic.twitter.com/Toi5cQZqLg
— Michaël van de Poppe (@CryptoMichNL) July 20, 2024
Bitcoin price analysis
The bullish sentiment coincides with a period when Bitcoin has successfully established itself above the $65,000 mark. This level is crucial for reclaiming $70,000 in search of a new all-time high.
By press time, Bitcoin was trading at $66,620, with daily gains of almost 4%. On the weekly chart, Bitcoin is up over 13%.
Bitcoin seven-day price chart. Source: Finbold
Meanwhile, after Bitcoin briefly surpassed $67,000, the market remains focused on this key short-term resistance level. Investors should also keep an eye on $66,000, as falling below this mark could lead to sustained losses.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
