Why Bitcoin ATHs In December Could Be A “Sure Thing”
The last two bear markets in Bitcoin were ended officially in the month of December. The confirmation signal came when the top cryptocurrency by market cap revisited its former all-time high.
With next month being December once again, and BTCUSD price action heating up, could revisiting all-time highs next month be a “sure thing?”
Bitcoin Know Sure Thing Could Cross Bullish Next Month
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 didn’t just happen once in December 2020 when BTCUSD surpassed the 2017 high of $20,000,. It also happened 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.
Will the KST cross bullish in December? | BTCUSD on TradingView.com
The Significance Of The December Pivot Point In Crypto Charts
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. So much so, that it’s never given a failed signal. A KST crossover should confirm a bull run, but why might it arrive in December?
Related Reading: Is The Bitcoin Trend Beginning Its Most Bullish Phase?
To start, each retest of former all-time highs happened in December as the chart above depicts. But beyond that, BTCUSD has a strange relationship with the month of December – give a take a month on either end.
Most peaks and bottoms have happened between the months of November, December, and January. This includes the 2013 peak and 2015 bottom, the 2017 peak and 2018 bottom, and the 2021 second peak and 2022 bottom driven by the FTX collapse. All Decembers in between were breakout months when the KST crossed over.
Still don’t think there could be something to the month of December?
The above chart was originally featured in Issue #27 of CoinChartist VIP: The Ethereum Issue. Check out the latest issue for free.
