Bitcoin May Cross Bullish Next Month
The last two bear markets in Bitcoin were officially ended in December when the top cryptocurrency revisited its former all-time high. With next month being December and BTCUSD price action heating up, could revisiting all-time highs next month be a “sure thing?”
The idea that BTCUSD could be back at all-time highs next month might sound unrealistic. But each time the 1M Know Sure Thing indicator crossed bullish, Bitcoin was back at former record prices the same month. This happened once in December 2020 when BTCUSD surpassed the 2017 high of $20,000 and before that in December 2016, just prior to the one-year bull market that made Bitcoin a household name.
The signal isn’t back yet, so it isn’t quite the “sure thing” as it seems. However, if the KST does cross bullish, it could end up three for three in December signaling a retest of former highs.
Understanding The Significance Of The December Pivot Point
The Know Sure Thing is a momentum oscillator created by Martin Pring that uses four different rate-of-change periods to produce the KST line. The signal line that generates crossovers is then calculated by taking a 9-period simple moving average of the KST. Although it generates signals late compared to other momentum crossover tools like the MACD, the signals are reliable. A KST crossover should confirm a bull run, but why might it arrive in December?
Each retest of former all-time highs happened in December as the chart above depicts. Beyond that, BTCUSD has a strange relationship with the month of December – give or take a month on either end. Most peaks and bottoms have happened between November, December, and January. All Decembers in between were breakout months when the KST crossed over.
If you still don’t think there could be something to the month of December check out Issue #27 of CoinChartist VIP: The Ethereum Issue for more information.
Hot Take: Is Bitcoin About To Break Out Next Month?
If history repeats itself, Bitcoin could be on track for another bullish run next month as its price action heats up. The significance of December pivot points in crypto charts cannot be overlooked given past patterns. Keep an eye on KST crossovers and retests of former all-time highs as potential indicators for what’s to come.
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