The vibrant and mercurial world of cryptocurrencies might soon start buzzing with excitement once again.
According to a recent analysis by the well-respected CryptoQuant contributor, Grizzly, Bitcoin appears to have formed a pattern that has previously been seen in market bottoms, one that has the potential to foretell a long-term rising trend.
Adding the 200-day moving average line (in blue) and realized price (in orange) to the long-term Bitcoin chart, Grizzly identified a pattern that could signal the formation of a long-term bottom.
Image by cryptoquant.com The overlap or crossing of the 200-day moving average from the top to the realized price has been observed in previous years, most notably in 2019, 2015, and 2012, following which Bitcoin underwent a long-term rising trend.
The current development, therefore, indicates a potentially bright future for the leading cryptocurrency. However, it is important to note that the macroeconomic factors that have put pressure on high-risk asset markets cannot be overlooked in this scenario. It remains to be seen if Bitcoin can decouple from assets such as equities and behave as a reliable store of value during inflationary times. Only time will tell if the largest cryptocurrency will maintain its upward trajectory.
