The intriguing world of cryptocurrency is ever-evolving, with analysts and enthusiasts alike keeping a close watch on market trends. Recently, crypto analyst Tony Severino shared significant insights regarding Bitcoin’s market trajectory, particularly focusing on the Bitcoin Percentage Price Oscillator (PPO) turning red after hitting $102,000. This development has sparked discussions about what it signifies for Bitcoin amid the current bull market.
Understanding the Bitcoin Percentage Price Oscillator (PPO)
In a recent post, Severino highlighted that Bitcoin’s weekly PPO had transitioned to red upon reaching the $102,000 mark. This shift in the indicator has historically been seen as a signal that the end of a Bitcoin bull run might be approaching. Severino previously emphasized that the red PPO often suggests a market peak is near, hinting at a potential turn in Bitcoin’s price trajectory.
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Severino elaborated on the potential implications of this market top, explaining that Bitcoin’s price could continue to surge once the red ticks begin. This suggests that the market could reach its peak even before the red indicator diminishes. Additionally, Severino pointed to the TD Sequential indicator as another tool suggesting Bitcoin might peak within the first or second quarter of the year. He mentioned the significance of BTCUSD’s quarterly candlesticks, which are on an 8-count, drawing parallels to the TD9 count that marked the end of the 2017 bull run.
Potential Timeline for Bitcoin’s Market Peak
If historical patterns repeat, Severino speculates that Bitcoin’s price could top out by July. However, he also believes a peak might occur as early as the first quarter, noting that it’s not unusual for peaks to happen on the 8th candlestick in the sequence. Despite these predictions, he acknowledged the possibility that the bull market might extend beyond the second quarter, as the TD8/9 setups could potentially fail.
Severino expressed skepticism about Bitcoin continuing to trend upward for multiple quarters without undergoing a significant correction. He also predicted that Bitcoin’s price might top below $150,000 as early as January 20, suggesting that Donald Trump’s inauguration could introduce a new paradigm influencing this cyclical peak. This prediction was based on the belief that the market might have already priced in Trump’s pro-crypto stance.
Is Bitcoin’s Price Correction Nearing Its End?
Meanwhile, other crypto analysts are observing that the downtrend in Bitcoin might be drawing to a close, especially with prices rebounding above the $100,000 threshold. Analyst Titan of Crypto noted a potential Bitcoin mark-up, indicating that the 7-week consolidation period for BTC could soon conclude.
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Another analyst, Mikybull Crypto, suggested that Bitcoin has reverted to a bullish stance. He observed that the bearish setup was invalidated following Bitcoin’s rise above $100,000, indicating that the bears were no longer in control. With Bitcoin reclaiming this critical price level, Mikybull Crypto speculated that a sustainable rally to a cycle top might be on the horizon.
As of the latest data, Bitcoin is trading at approximately $101,677, marking a rise of over 2% in the past 24 hours, according to CoinMarketCap.
