Kaleo, a popular crypto analyst and trader, has recently pinpointed the classical indicator that could trigger the entrance of Bitcoin (BTC), the largest cryptocurrency by market cap, into a new bull market.
In a new strategy session, the prominent trader said historically, every Bitcoin bull market started with price crossing above the 200-day simple moving average (SMA).
Kaleo further added that watching for a break of the 200-day SMA will be one of the key signals to wait for before flipping bullish on the flagship crypto.
Kaleo noted:
“I think one of the things, really, looking forward as far as watching for big pivots, any type of shifts from where we are, is a reclaim of that 200-day simple moving average as well. So as far as getting exuberantly and a shift for ‘Okay, we’re in the clear for a little while to go,’ that’s one thing I am looking for.
“I know it’s incredibly simple but it is something that has been a signature for every single bottom that we’ve seen on this chart over the course of the past few cycles. So I think that it’s something that is simple and easy to keep an eye on… Until that happens, just remaining patient is important.”
Kaleo suggests a scenario in which Bitcoin consolidates and hits a slightly new bear market low over the coming months before seeing a spike by June 2023.
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