Popular crypto analyst and trader Kaleo says that a classic technical indicator could signal the emergence of a new Bitcoin (BTC) bullish market.
In a new strategy session, Kaleo said that historically every Bitcoin bull market starts with price breaking above the 200-day simple moving average (SMA).
The trader says that although the strategy is simple, watching for a breakout of the 200-day SMA will be one of the key signals to look out for before swinging higher on BTC.
“I think one of the things, really, looking forward in terms of big pivots, any kind of change from where we are, is also a recovery from that 200-day simple moving average. So as far as exuberance and a change to, “Okay, we’re clear for a little while,” that’s something I’m looking for.
I know it’s incredibly simple, but it’s something that has been a signature for every bottom we’ve seen on this chart over the past few cycles. So I think it’s something simple and easy to monitor…
Until this happens, it is important to remain patient.
Kaleo suggests a scenario in which Bitcoin consolidates and hits a new slightly bearish low over the next few months before experiencing a peak by June 2023.
At the time of writing, Bitcoin is changing hands for $16,766, around 75% below its all-time high.
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