The 350-day moving average is the most recent sign that BTC prices are going to start going up again. This makes Q1 2022 look more and more like it’s going against the trend.
Bitcoin (BTC) may be consolidating at $47,000, but long-term charts show how important this week’s little bull run has been.
A metric called the Golden Ratio Multiplier (GRM) says that on March 27, BTC/USD regained an important support zone for more gains.
There was a trendline slump that was bigger than March 2020. Bitcoin is now out of that slump
GRM is a long-term measure of how Bitcoin prices move. It is used to see if Bitcoin’s price growth (or the opposite) is too fast for how mature it is as an asset in terms of adoption.
When it does this, it uses a log scale, which is made up of Bitcoin’s 350-day moving average (DMA) and Fibonacci sequences to show how many times that trendline has changed.
Because BTC/USD has been above the 350DMA for most of the time since mid-2019, dropping below it now stands out as a sign that prices aren’t behaving the way they should be.
As Bitcoin gets older and more people use it, the logarithmic extremes become less noticeable.
“The Golden Ratio Multiplier is a good tool because it can show when the market is likely to be overstretched in terms of Bitcoin’s adoption curve growth and market cycles,” analyst Philip Swift, who came up with the tool in 2019, said at the time.
During March 2020. The COVID-19 crash, for example, was Bitcoin’s longest recent trip below the 350DMA. But in 2022, it managed to beat it by three months to two, making it the longest recent dip below the 350DMA.
When it comes to GRM, the first three months of this year look like a clear break from the norm.
Another thing you can do with GRM is figure out when the tops of the Bitcoin market cycle are. Swift thought that the next top would be about three times as big as the 350DMA in 2019.
He said that if this Fibonacci sequence pattern keeps going the same way it has for the past nine years, then the next market cycle high will be when price is in the area of the 350DMA x3.
The weekly chart eats up the resistance that was once strong
On mid-range timeframes, as Cointelegraph said, Bitcoin is already making a statement when it comes to the trendlines that will be in place through the end of 2022.
The 21-week and 50-week exponential MAs, two of the MAs that were a barrier in the first quarter, had their first fight this week. Bulls are now fighting for them as new support, data from Cointelegraph Markets Pro and TradingView shows.
There are two parts to the trading range that has been in place since the start of 2021. The floor and ceiling are at $28,000 and $69,000, respectively.
Before, a well-known trader and analyst said that if BTC/USD went above them, it could reach new all-time highs for the first time in its history.
It’s the first time that BTC has closed above the 21-week Bull Market EMA when it’s in an uptrend since mid-July 2021, he said this week.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
