Bitcoin Monthly Chart Breakout Signals Potential Bull Rally
A Bitcoin analyst has identified a bullish signal for Bitcoin leading up to the U.S. presidential election. The analyst stated in a podcast that Bitcoin is forming a higher monthly close, suggesting a potential shift in the market trend after months of sideways movement.
Bitcoin recovered from a midweek pullback after dropping to $65,000 on Wednesday. This recovery is consistent with the cryptocurrency’s recent pattern of higher lows after each pullback, which is typical of an uptrend. Despite the dip, Bitcoin closed at $66,601 on Wednesday, matching the previous swing-high.
The analyst highlighted Bitcoin’s upward momentum, noting that the cryptocurrency is only 6.5% away from breaking through the next resistance level. He also pointed out that Bitcoin is only 13% away from its all-time high.
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According to the analyst, Bitcoin’s recent pullbacks happened because the cryptocurrency correlated with mainstream assets. He cited the S&P 500 trend, highlighting momentary rallies and pullbacks that coincide with Bitcoin’s price behavior. The analyst revealed that Bitcoin and the S$P 500 have maintained a close relationship since August, rising and declining at similar moments.
Nonetheless, the bulls remain in control of the cryptocurrency market. From a long-term perspective, Bitcoin’s weekly chart shows the bulls have controlled the market since 2023. Bitcoin rallied over 350% from January 2023 to reach its $73,794 all-time high in March 2024. Despite consolidating into a sideways trend, Bitcoin retains a profit of over 310% at the current price, counting from the beginning of 2023.
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According to the analyst, as long as the S$P 500 and the stock market remain stable and continue trending up, Bitcoin will reach an all-time high before the end of this year. He bases this prediction on Bitcoin’s monthly chart, which indicates a potential new upward phase.
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