Bitcoin (BTC) Price Prepares to Close Its Seventh Consecutive Monthly Candle Above the ATH of 2021

Renowned crypto analyst Mustache recently took to Twitter to highlight this key milestone, emphasizing the importance of higher timeframes in trading.

As Bitcoin price gradually recovers, attention has turned to the asset, which is preparing to close its monthly candlestick chart above the all-time high price (ATH) of 2021 for the seventh consecutive month.

Famous crypto analyst Mustache recently highlighted this important milestone in X, highlighting the importance of higher time frames in trading.

According to Mustache, Bitcoin remaining above its previous ATH each month is a strong indicator of support and could signal continued upward momentum soon.

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Mustache's analysis was stated as follows: “Can everyone see what's going on here? BTC is about to close its SEVENTH monthly candlestick chart ABOVE the ATH of 2021. The higher the timeframe, the stronger the support. This is a bullish situation to be honest.”

This statement highlights the importance of long-term support levels in his BTC outlook. Particularly in trading, when an asset consistently closes above a previous high on higher time frames, it usually indicates that the market has established a solid foundation for future growth.

This observation is especially true for Bitcoin, which exhibits strong price movements following extended price movements such as consolidation and support formation.

While Bitcoin's continued support above its previous ATH is a positive sign, there is another technical indicator highlighted by the same analysts: the Bollinger Band Width Percentile (BBWP).

BBWP Indicator Points to Upcoming 200% Rally

Moustache recently showed in a post that the BBWP on Bitcoin's 2-week (2W) chart is showing blue bars that have only been seen once in Bitcoin history.

BBWP is a tool used in technical analysis to measure the width of Bollinger Bands, which are volatility indicators that reflect the range of price movement of an asset. Blue bars on BBWP indicate a period of low volatility that usually precedes significant price swings.

Explaining the effects of this signal, Mustache stated that last time BBWP signaled multiple blue bars on BTC's 2W Chart and BTC saw an upside move of almost 200%.

“By the way, this is only the second time we've seen blue bars in BBWP. “This has never happened before in history,” added Mustache. This observation suggests that Bitcoin price may be on the verge of a significant move and has the potential to make significant gains if the historical pattern continues.

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In particular, BBWP's low volatility indicator aligns with the concept that markets often experience a wave of price action after calm periods. For Bitcoin, the current low volatility environment indicated by the blue bars may be setting the stage for a significant price breakout.

Image created with DALL-E, Chart TradingView

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