Prominent cryptocurrency analyst shares insight into the Bitcoin market and the possibility of the big bull making a highly anticipated comeback. In a recent post shared to X, formerly Twitter, pseudonymous analyst Ali Charts broke down an interesting pattern spotted in the Bitcoin charts.
In his post, the analyst observed that since mid-April, the price of bitcoin has retraced every time the Relative Strength Index (RSI) hits 73.31 on the 4-hour chart.
As depicted in a chart shared by the analyst, the pattern repeats itself as Bitcoin follows a new trendline. The apex cryptocurrency could hit a bump and lose momentum, he added. However, he points to a pattern that could signify the return of a long-waited bull run.
As he explains,
“We’re seeing this again as BTC approaches a descending resistance trendline at $27,440. A correction from here might take BTC to $25,200 or below, providing a potential ‘buy the dip’ opportunity. However, watch out for a 4-hour candlestick close above $27,440 because it could signal the return of the bull run.”
The analyst made a similar observation a while ago, highlighting the characteristics of a bull run, stating that an increase in on-chain activity is a significant pointer that a rally is underway.
When the monthly average of new wallets exceeds existing ones, it is often considered an indicator that a rally is brewing. Bitcoin’s on-chain activities have not stalled despite the decline in the BTC’s price value.
“This can be spotted when the monthly average of new wallets (red) surpasses the yearly average (blue), which indicates strengthened network fundamentals and increased use. Notice that BTC on-chain activity is expanding despite stagnant prices, suggesting the BTC bull run may soon resume!” He wrote.
At press time, Bitcoin is trading for $26,628. The apex cryptocurrency has successfully moved to the green zone after clearing out weekly losses. Bitcoin is closing the weekly on a more positive note as hourly gains surge. Although trading volume is still negative, dropping by more than 29% at press time. On the other hand, the market cap has continued to increase in value.
Like Bitcoin, a handful of other altcoins also clear out weekly losses. Notably, Ethereum (ETH) and (XRP) have emerged as today’s highest hourly gainers in the top 5.