Bitcoin (BTC) can be consolidated to $ 47,000, but the longer time frame shows how significant the withdrawal of minibullish will be this week.

According to the Golden Ratio Multiplier Scale (GRM), BTC / USD restored a key support area on March 27 to lock in another rally.

Bitcoin breaks out of the stagnation trend line that crossed March 2020
GRM is a long-term goal to monitor the price movement of bitcoin. It is used to determine if an increase in the price of Bitcoin (or vice versa) is too large for its total maturity as an asset in terms of adoption.

This is done using a logarithmic scale that includes the 350-day moving average (DMA) of Bitcoin and the Fibonacci sequence to get multiples of this trend line.

As such, BTC / USD falling below 350 DMA is now a clear sign of extreme price action, with the vast majority of days above this level since mid-2019.

As Bitcoin matures and spreads, the logarithmic extremes become less and less obvious.

“The Golden Ratio Multiplier is an effective tool because it is able to show when the market is likely to be depressed in the context of Bitcoin’s rising adoption curve and market cycles,” said analyst Philip Swift, who created the tool in 2019. time.

For example, the COVID-19 crash in March 2020 marked Bitcoin’s longest run below 350DMA in recent memory, but 2022 managed to beat it by three to two months.

Thus, the first three months of this year seem to be the clear exception to the rule when it comes to GRM.

Another use of GRM is naturally related to predicting the peaks in the bitcoin market cycle. In 2019, Swift calculated that the next peak would be about triple the 350DMA.

“If this declining Fibonacci pattern continues to emerge, as it has for the past nine years, the peak of the next market cycle will be when the price is in the 350 DMA x3 range,” he said.

Bitcoin gold multiplier chart. Source: LookIntoBitcoin
Weekly chart showing strong resistance to minced meat compared to before
As Cointelegraph mentioned, in the medium term, Bitcoin is already making a statement regarding trend lines that will be in place through 2022.

Related: Bitcoin sentiment reaches “greed” in 2022 amid calls for $ 45,000 BTC price cut

The two moving averages of resistance in the first quarter – 21-week and 50-week exponential moving averages – represent the first challenge this week, and the bulls are currently looking for new support, data from Cointelegraph Markets Pro and TradingView show.

The two roughly divide Bitcoin’s current trading area, which has been in place since early 2021, into two with $ 28,000 and $ 69,000 as low and high limits, respectively.

By moving to the top, the well-known trader and analyst Rekt Capital has previously stated that this would allow BTC / USD to reach new all-time highs.

“BTC closed the weekly candle above the 21-week moving average in a bull market heading in an uptrend for the first time since mid-July 2021,” he added in an update on the case this week.

Source: CoinTelegraph