Bitcoin Bears Beware: Current Chart Setup Echoes Massive 2024 Surge

Bitcoin Bears Beware: Is History About to Repeat Itself?

Bitcoin’s (BTC) current chart patterns, which resemble those that preceded the late 2024 run from $70,000 to $109,000, may be worth keeping a careful eye on for cryptocurrency bears.

Bitcoin’s MACD Signals Potential Bear Trap

The Moving Average Convergence Divergence (MACD) histogram, a momentum indicator used to spot trend shifts and reversals, is the first pattern on the weekly chart. Generally speaking, bullish or bearish changes in momentum are indicated by MACD crossings above or below the zero line.

Traders, however, consider price action when interpreting these signals. For instance, a bearish crossover must be confirmed by declining prices; otherwise, it may signal underlying strength and a bear trap. That appears to be the case with Bitcoin right now.

Is Bitcoin’s Recovery Above $90k a Signal of Strength Despite Negative MACD?

The cryptocurrency first declined in mid-February when the MACD turned negative, but it soon recovered in March at the 50-week SMA and has since risen beyond $90k. The MACD has remained below zero over this entire period. In August and September of last year, prices held the SMA support despite persistently negative MACD indications. This pattern is reminiscent of those times.

Bitcoin’s Death Cross: Bear Trap or Real Downtrend?

SMAs of 50 and 200 days are involved in the second pattern. A bearish crossover, sometimes referred to as the death cross, was created by these averages approximately four weeks ago, suggesting a possible long-term downward trend. However, Bitcoin found support at $75K and reversed direction, indicating that this was a bear trap.

Golden Cross Ahead: Will Bitcoin Break Its $109K Record Again?

The 50-day SMA has just started to rise once more and may soon overtake the 200-day SMA, forming a bullish golden cross in the upcoming weeks. This pattern is very similar to the trend from the previous year: the August death cross signaled a bottom, which was soon followed by a golden cross that caused a breakout above $70K and, eventually, a rally above $109K to reach new highs. Put another way, positive volatility may be approaching, which might push Bitcoin well over its January peak of $109K.

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