Why Bitcoin Could Explode to $40,000 Per Coin In No Time
The Bitcoin price is currently trading at $24,000, and recently held a retest of $20,000. Yet within weeks, the Bitcoin price can double to more than $40,000 in a flash.
Here’s a closer look at the technical combination that has previously had an almost perfect track record of signaling the start of the strongest bull trends in crypto history.
BTCUSD signal is back leading to explosive movement
Markets are cyclical and history is said to rhyme. Each cycle in BTCUSD has played out slightly differently, but they have almost all started with the same flash bang setup that resulted in an explosive move, followed by a sustained rally.
The particular setup involves a combination of the Logarithmic Moving Average Convergence Divergence (LMACD) indicator and the Bollinger Bands on the 3-week time frame.
In the past, this particular setup has always resulted in the Bitcoin price at least doubling, even tripling, within a few days to weeks. The combination of the two technical tools generates the signal when BTCUSD crosses above the center line of the Bollinger Bands, and when the red trigger passes above the dotted center line of the LMACD.
This setup is back for only the fourth time in Bitcoin’s price history, with time on its side according to cyclical behavior. The signal confirmed each time that the bottom was in, and started a massive move higher.
The indicator combo is about to trigger a buy signal | BTCUSD on TradingView.com
Why Bitcoin Price Can Double in Less Than Six Weeks
Each time the signal was fired and BTCUSD closed above the midline of the Bollinger Bands. This confirmation caused the price to rise to the upper band over the next 3-6 weeks, resulting in an average return of 118%.
In 2013, after the signal was triggered, Bitcoin immediately surged 139% to the upper band, then continued another 19,000% higher.
The second signal in 2015 saw the weakest initial rally with a 76% ROI after crossing the midline – which on Bollinger Bands is a 20-period simple moving average. The entire rally resulted in more than 7000% in gains.
In 2019, BTCUSD pumped another 139%, then added another 1000% before the bull run ended. Now the signal is back and the upper Bollinger band is at about $40,000 per BTC, or about double from here and the recent $20,000 retest.
Historical data suggests that the top cryptocurrency by market capitalization could see a strong move soon, with as much as 118% on average initially. The average of the three rallies that followed rounds to about 9000% on average. Much of the gain came in the early days of crypto, so don’t expect anything that significant. But the math is what it is, and while past results are no guarantee of future results, the probability of an explosive move becomes much higher when the signal is confirmed.