Bitcoin Bull Market Signal Could Herald ATH Retest In December
It is a commonly believed idea that past performance is not an indicator of future results. However, could a quirk in Bitcoin’s price chart structure point to another retest of former all-time highs come December?
History Repeating: Technical Indicator Signals Return to Record-Breaking Prices
The Know Sure Thing (KST) is a momentum oscillator that generates bullish and bearish signals based on crossovers. According to the chart, each time the 1M KST crossed bullish, Bitcoin revisited its former record prices the same month. This has occurred twice before in December 2016 and December 2020, just before Bitcoin skyrocketed to new heights.
Despite current market speculation, the KST is yet to crossover into bullish territory, raising doubts about the likelihood of retracing all-time highs. However, if history serves as a guide, there is a strong possibility of a three-peat signalling a retracement at the end of this year.
Significance Of The KST As A Bull Run Confirmation Tool
Most momentum crossover tools generate late signals, but the KST’s crossovers have never failed. This technical analysis tool was designed to ascertain the likelihood of a bull run, and crossing into bullish territory has always preceded a summit. But what role does December have to play in this market anomaly?
December: A Key Pivot Point For Bitcoin
The chart demonstrating the Know Sure Thing indicator crossover pattern clearly exhibits a correlation between the month of December and former all-time highs. Not only is December demonstrating a pronounced surge, but in combination with November and January, it has often marked extreme highs and lows.
Looking back at historical cryptocurrency price data, it is striking to observe that major peaks and troughs frequently align with December, from the 2013 and 2015 cycle lows, to the 2017 and 2018 cycle highs, right up to the 2021 peak and 2022 bottom.
Moreover, December’s relationship with significant KST crossovers becomes even more noticeable. Considering these facts, the correlation between December Bitcoin price action and the 1M KST crossing should not be overlooked.
