Bitcoin is once again testing a crucial level, according to analyst Ali Martinez. In a recent post on Twitter, Martinez pointed out that Bitcoin is testing the 200-day Simple Moving Average (SMA) for the third time since August. A breakout at this point could potentially signal a bullish trend. As Martinez’s chart shows, Bitcoin last tested this level in early and mid-August. Perhaps the saying “third time’s a charm” could apply here.
#Bitcoin is testing the 200D-SMA for the third time since August. A breakout here could be a major bullish signal! pic.twitter.com/Y7XVMBVxN5
— Ali (@ali_charts) September 24, 2024
What Are Other Analysts Saying?
It’s not just Martinez who’s eyeing a potential breakout. Rekt Capital, another well-followed analyst, shared that we might see a breakout in just a few days. His prediction is based on historical data showing that Bitcoin tends to break out of its ReAccumulation Range about 154-161 days after the Halving. Right now, we are 157 days post-Halving, so according to Rekt Capital, we could be just days away from a move.
His prediction lines up with what Martinez is seeing with Bitcoin’s 200D-SMA test. If these two factors collide, we might be looking at a notable shift in Bitcoin’s price.
Historically, Bitcoin has broken out from its ReAccumulation Range 154-161 days after the Halving
It is 157 days after the Halving now
History suggests it is "Breakout Time" for Bitcoin$BTC #Crypto #Bitcoin https://t.co/Ydqlu4JKSf pic.twitter.com/CwRvUYnHW0
— Rekt Capital (@rektcapital) September 23, 2024
Miner Sentiment and the Puell Multiple Hint at Rally
Adding more weight to the idea of an upcoming move is research from CryptoQuant. They’ve found that the Puell Multiple has just hit the 0.5 “green zone,” which is considered a strong reversal signal. The Puell Multiple measures how profitable Bitcoin mining is compared to the past year, and when it drops below 0.5, it signals low profits, which often leads to a price increase as miners reduce operations.
Historically, this green zone has led to price increases, while hitting the red zone has typically indicated the opposite—a downward move. The alignment of this metric with the technical levels analysts are watching adds to the sentiment that we could be nearing an upward move. If this is about to happen, Ali Martinez adds, Bitcoin could be well on its way to a new top of $400,000 per coin this cycle.
If the #Bitcoin Long-Term Power Law holds true, the next market top might hit around $400,000! pic.twitter.com/yuQbKNMefU
— Ali (@ali_charts) September 24, 2024
Between Bitcoin’s third test of the 200D-SMA, historical breakout patterns, and miner profitability data, it seems like we’re in an interesting phase for Bitcoin. At time of publication, Bitcoin is trading at $63,500.
Stay tuned to HowToBuyBitcoin.org for the latest updates on what’s happening in the market!