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Bitcoin has just regained a key price trendline after its longest absence since March 2020

Bitcoin (BTC) may be consolidating at $47,000, but longer periods show the importance of this week’s mini-bull run.

According to the Golden Ratio Multiplier (GRM) metric, on March 27, BTC/USD reclaimed a key support zone to secure further upside potential.

Bitcoin is exiting the trendline dip that surpassed March 2020

GRM is a long-term observation metric for Bitcoin price action. It is used to determine if Bitcoin’s price growth (or the opposite) is overextended in terms of adoption relative to its overall maturity as an asset.

It uses a logarithmic scale that includes Bitcoin’s 350-day moving average (DMA) and Fibonacci sequences to obtain multiples of this trendline.

Therefore, BTC/USD’s dip below the 350DMA level is now a salient sign of outlier price action as the vast majority of days since mid-2019 have been spent above it.

As Bitcoin matures and adoption spreads, logarithmic extremes become less pronounced.

“The golden ratio multiple is an effective tool because it can show when the market is likely to become congested in the context of Bitcoin’s adoption curve growth and market cycles,” explained analyst Philip Swift, who created the tool in 2019, at the time .

The March 2020 COVID-19 crash, for example, was Bitcoin’s longest journey below the 350DMA in recent memory, but 2022 managed to surpass it by three to two months.

In this respect, the first three months of this year look like a clear exception to the rule in terms of GRM.

Another use for GRM is of course associated with predicting Bitcoin market cycle peaks. In 2019, Swift estimated that the next peak would be around three times the 350DMA.

“If this decreasing Fibonacci sequence pattern continues to play out as it has over the past 9 years, then the next market cycle top will be when the price is in the 350DMA x3 region,” he argued.

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Bitcoin golden ratio multiplier chart. Source: LookIntoBitcoin

The weekly chart is mincing what was once solid resistance

As Cointelegraph reported, Bitcoin is already making a statement on medium-term timeframes when it comes to trendlines that hold throughout 2022.

Related: Bitcoin sentiment meets ‘greed’ first in 2022 amid calls for $45,000 BTC price drop

Two MAs that offered resistance in the first quarter — the 21-week and 50-week exponential MA — saw their first challenge this week, and bulls are currently battling for them as new support, data from Cointelegraph Markets Pro and TradingView shows.

The two roughly split Bitcoin’s current trading range, which has been in effect since early 2021, into two parts with $28,000 and $69,000 as the floor and ceiling, respectively.

Moving above them, popular trader and analyst Rekt Capital previously said, would allow BTC/USD to make fresh all-time highs.

“BTC performed a weekly candle close above the 21-week bull market EMA as the price finds itself in an uptrend for the first time since mid-July 2021,” he added in one To update this week’s topic.

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BTC/USD 1-week candlestick chart (Bitstamp) with 21-week and 50-week EMA. Source: TradingView

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.