Prominent cryptocurrency analyst Kevin says Bitcoin BTC/USD is positioned for significant upside after receiving a rare weekly hash ribbons buy signal, despite warning that golden crosses typically precede short-term pullbacks in the current bull cycle.

What Happened: “That’s a big deal,” Kevin said in his latest analysis published on Wednesday, noting this represents only the second time in Bitcoin’s history that the indicator has triggered at all-time highs.

The hash ribbons indicator, which Kevin describes as having a “100% hit rate on the weekly time frame,” last flashed a buy signal at previous all-time highs in December 2020 when Bitcoin was trading around $20,000.

That signal preceded a 231% rally to $65,000 over 13 weeks, with Bitcoin moving “pretty much up only” during that period.

More significantly, Kevin identified this as the third occurrence of back-to-back weekly hash ribbons buy signals in Bitcoin’s history, with the current signals occurring just 10 weeks apart.

The only comparable scenario occurred in 2012 when signals appeared six weeks apart, coinciding with a golden cross of the bull market support band—the same technical setup occurring now.

“This is probably the most similar setup that we’ve seen compared to what we’re seeing now,” Kevin noted, referencing the 2012 pattern that saw Bitcoin rally from $39 to approximately $160.

Read Also: Anthony Scaramucci Says ‘Own Your S***’ Is The First Rule for Young Investors: Urges Them To Embrace Change, Take Risks And Learn From Market Veterans Like Him

Get Started

Trade Bitcoin, Ethereum, and More Instantly — No Wallets, No Hassle

Speculate on price movements, claim up to $200 in bonuses, and start with risk-free paper trading with crypto futures on Plus500.

Get Started

Disclosure: 82% of retail CFD accounts lose money

Why It Matters: Still, Kevin cautioned about near-term volatility, pointing out that Bitcoin has experienced pullbacks after 66% of golden crosses during the current bull cycle.

“About 66% of the time you see pullbacks on Bitcoin through this bullish cycle when it comes to the 50 cross over the 200 simple moving average on the daily time frame,” he stressed, noting that Bitcoin recently completed its fourth golden cross of this cycle.

The analyst emphasized that any short-term weakness shouldn’t overshadow the broader bullish setup. “Weekly hash ribbons buy signals take anywhere from three to nine weeks to play out,” Kevin said, adding that “sometimes before we go higher you can get a pullback right.”

Supporting the bullish case, Kevin highlighted multiple confluent factors including a weekly MACD above zero, a two-week stock RSI cross, and his previously successful “reversal zone” call that accurately timed Bitcoin’s April bottom.

For altcoins, Kevin remains optimistic about Total 3 (altcoin market cap excluding Bitcoin and Ethereum ETH/USD, which has formed what he describes as a “beautiful bottoming structure/inverse head and shoulders at the macro golden pocket” and is now “above all of our major moving averages.”

Read Next:

• Bitcoin Faces Potential Sell-Off Near $120,000 As Profit-Taking Rises, Glassnode Warns

Image: Shutterstock