Is Bitcoin Bias Switching From Bearish To Bullish?

In my previous articles, I highlighted a pattern that has played out on Bitcoin BTC/USD twice since 2018, resulting in a significant bull rally. 

This pattern is potentially taking place for the third time and could be the catalyst that sees the bulls push through to $100,000. 

What Is This Pattern?

It is a bounce off the weekly 200 simple moving average (w200sma). Below is the weekly time frame. 

The w200sma has two purposes:

1. It helps to establish a bias to price action; above, the bias is bullish and below bearish. 
2. It acts as a major level of support in a bull trend and resistance in a bear trend. 

In 2018, the w200sma held firm as support, followed by a 305% move to the upside. In 2020, it held firm again as support, followed by a 1,065% bull run. 

The price is now back above the w200sma after breaking below it in mid-June of this year. 

If the price closes above the w200sma, could this be the sign we need to see a reversal in the market and for the bulls to march towards $100,000?

It is too early to tell, but if the price can also move back up the daily 200sma (currently, the price is trading below) and move back above the lowest point of last year, we could see the bulls regain control of the market. 

For now, it is a waiting game. 

It is always best to let price dictate instead of predicting before making a decision. 

Photo: MD-PhotoArts via Shutterstock