In a new strategy session, Kaleo says that historically, every Bitcoin bull market began with price crossing above the 200-day simple moving average (SMA).
The trader says that while the strategy is simple, watching for a break of the 200-day SMA will be one of the key signals to keep an eye on before flipping bullish on BTC.
“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.
At time of writing, Bitcoin is changing hands for $16,766, about 75% down from its all-time high.
