Historically precise ‘momentum sign’ mean possible Bitcoin breakout ahead

Bitcoin (BTC) might see a “massive bullish move” if a traditional trigger from the 2021 bull run repeats today.

In a tweet on Dec. 16, on-chain expert Matthew Hyland, understood by the Twitter manage Parabolic Matt, accentuated Bitcoin’s momentum sign.

Momentum sign mean possible “massive bullish move”

While still under $50,000, Bitcoin has actually currently broken out of a long-lasting sag on the momentum sign, which determines closing rates versus those from a duration in the past.

Two such breakouts have actually happened this year, and after every one, BTC/USD went on to see substantial benefit.

“The previous two times it broke out of a multi-month downtrend this year, a massive bullish move followed,” Hyland composed as part of remarks.

BTC/USD vs. momentum sign annotated chart. Source: Matthew Hyland/ Twitter

While not a warranty of “up only” cost action, the momentum information signs up with a a great deal of on-chain metrics flashing bull signals this month — a list that keeps growing.

Hyland is understood for his extremely positive cost projections, and last month triggered a stir by forecasting that Bitcoin would strike $250,000 in January 2022 while revoking among the popular stock-to-flow cost designs.

In more analysis, he kept in mind that both the momentum sign and Bitcoin’s relative strength index (RSI) on everyday timeframes are simulating habits from September, when the marketplace put in a regional bottom prior to increasing to existing $69,000 all-time highs.

Dollar dives post Fed

Spot cost action was on the other hand quieter on Dec. 15, Bitcoin remaining around $49,000 regardless of an obvious drop in the U.S. dollar.

Related: Bitcoin sheds ‘dumb money’ as retail buys most BTC considering that March 2020 crash

The U.S. dollar currency index (DXY), which determines USD versus a basket of trading partner currencies, reversed its extended bull run recently, with Dec. 1 seeing a noticable comedown, information from TradingView programs.

DXY 1-day candle light chart. Source: TradingView

Traditionally inversely associated with BTC, DXY’s drop follows an increase for crypto and equities alike courtesy of the Federal Reserve.