Against the backdrop of the gradual recovery of the Bitcoin price, attention has been focused on this asset as it is on the verge of closing its seventh consecutive monthly candle above its all-time high (ATH) of 2021.
Renowned cryptocurrency analyst Moustache recently reached out to X to attraction this key milestone, highlighting the importance of longer time frames in trading.
According to Moustache, the fact that Bitcoin has been staying above its previous all-time high each month is a robust support indicator, which could signal continued upward momentum in the near term.
Is Bitcoin Gaining Momentum Ahead of a Large Move?
Mustache’s analysis noted: “Does everyone see what’s going on here? BTC is about to close its SEVENTH monthly candle above its 2021 ATH. The higher the time frame, the stronger the support. This is bullish [to be honest].”
This statement highlights the importance of long-term support levels in his BTC outlook. Interestingly, in trading, when an asset consistently closes above a previous high on higher time frames, it often indicates that the market is creating a solid foundation for future growth.
This observation is especially relevant in the case of Bitcoin, which has historically exhibited robust price swings following extended periods of consolidation and support building.
While bitcoin’s continued support above its previous all-time high is a positive sign, the same analysts also highlight another technical indicator: the Bollinger Band Width (BBWP).
BBWP indicator signals 200% growth
In a recent post by Moustache he pointed out that the BBWP on the 2-week (2W) Bitcoin chart signals the appearance of blue bars, which is a uncommon phenomenon observed only once in Bitcoin’s history.
BBWP is a tool used in technical analysis to measure the width of Bollinger Bands, which are volatility indicators that reflect the range of asset price movement. The blue bars in BBWP indicate a period of low volatility that often precedes significant price swings.
Moustache explained the implications of this signal, revealing that the last time BBWP signaled multiple blue bars on the 2W BTC chart, the price of BTC surged by almost 200%.
“Incidentally, this is only the second time we’ve seen blue bars in the BBWP. It’s never happened before in history,” Moustache noted. This observation suggests that Bitcoin could be on the cusp of a major price move, with the potential for significant gains if the historical pattern holds.
Interestingly, the BBWP’s low volatility indication is consistent with the idea that markets often experience a surge in price action following periods of peaceful. In the case of Bitcoin, the current environment of subdued volatility, as indicated by the blue bars, could be setting the stage for a significant price breakout.
Featured image created with DALL-E, chart from TradingView
