Amid Bitcoin’s current gradual recovery in price, the digital asset is poised to close its seventh consecutive monthly candle above the all-time high (ATH) it reached in 2021. This significant milestone has not gone unnoticed, with renowned crypto analyst Moustache highlighting its implications on X. Emphasizing the importance of higher timeframes in trading, Moustache notes that Bitcoin’s ability to sustain levels above its previous ATH each month could indicate strong support and continued upward momentum.
According to Moustache, the fact that Bitcoin is consistently holding above its ATH is a robust signal of support, suggesting that bullish trends may be on the horizon. “Can everyone see what’s happening here? BTC is about to close its SEVENTH monthly candle above the ATH of 2021. The higher the timeframe, the stronger the support. That’s bullish, to be honest,” Moustache remarked, sharing a chart that illustrated Bitcoin’s performance relative to its 2021 peak.
This observation underscores the importance of long-term support levels in trading strategies. Historically, periods where Bitcoin closes above a previous peak on higher timeframes often indicate that the market is building a solid foundation for future growth. Bitcoin has shown a pattern of strong price movements following extended periods of consolidation and support-building, highlighting the relevance of this observation.
In addition to Bitcoin’s stability above its previous ATH, another crucial technical indicator has emerged. Moustache pointed out the significance of the Bollinger Band Width Percentile (BBWP) on Bitcoin’s 2-week chart, which recently signaled the emergence of blue bars—a rare occurrence. The BBWP measures the width of the Bollinger Bands, which are volatility indicators reflecting the range of an asset’s price movement. The blue bars indicate a period of low volatility, often preceding significant price swings.
Moustache explained the importance of this signal, revealing that the last occurrence of multiple blue bars on Bitcoin’s 2-week chart led to an almost 200% upward movement in BTC’s price. “Incidentally, this is only the second time we’ve seen blue bars in the BBWP. This has never happened before in history,” Moustache noted. This pattern suggests that Bitcoin might be on the brink of a substantial price movement, with potential significant gains if the historical trend repeats.
The BBWP’s signal of low volatility aligns with the broader concept in financial markets that a period of calm often precedes a surge in price action. In Bitcoin’s case, the current environment of subdued volatility, as indicated by the blue bars, may be setting the stage for a major price breakout. As observed on TradingView.com, Bitcoin’s price is currently moving sideways on the 2-hour chart, potentially hinting at the calm before a significant price shift.
