Will the giant Bitcoin Bull run first? Two chart patterns reflect BTC gatherings at $109,000

This is a daily technical analysis by Coindesk analyst and chartered market engineer Omkar Godbole.

Crypto Bears may want to watch in-depth the recent chart patterns of Bitcoin (BTC).

The first pattern includes the moving average convergence divergence (MACD) histogram for the weekly chart. This is the momentum indicator used to identify trend changes and inversions. MACD crossovers above or below the zero line usually show bullish or bearish shifts in momentum.

However, traders interpret these signals in price actions and context. For example, bearish crossovers require verification due to lower prices. Otherwise it could indicate a fundamental strength and bear trap. Now, that seems to be the case with BTC.

Cryptocurrency initially fell after MACD turned the negativity in mid-February, but quickly found support on the 50-week Simple Moving Average (SMA) in March, then bouncing beyond $90,000. Meanwhile, the MACD is kept below zero.

This pattern is reminiscent of August and September last year. It holds SMA support at the price in a sustained bearish MACD signal. The indicator turned bullish around mid-October, and by December it saw trends at rallies ranging from $70,000 to $100,000.

The second pattern includes 50 and 200 days of SMA. About four weeks ago, these averages formed a bearish crossover known as the Death Cross. However, this turned out to be a bear trap, and Bitcoin found around $75,000 in support and reversed the course.

Recently, the 50-day SMA began to rise again, and soon surpassed the 200-day SMA, allowing us to install bullish golden crosses in the coming weeks.

This pattern closely reflects last year's trends. The August Death Cross marked the bottom, and soon a golden cross followed, causing a breakout of over $70,000, which ultimately led to a rally of over $109,000.

In other words, bullish volatility could be on the horizon, potentially taking Bitcoin well beyond the January high of 109K.

Chart patterns are commonly used to assess market strength and predict future movements. However, it is important to remember that history does not always repeat itself. Macroeconomic factors can rapidly sway the market direction, making chart analysis completely difficult.