Lark Davis is of the opinion that the bitcoin blue diamond signal found on the monthly chart may well be the harbinger of a significant bull market. The crypto analyst has drawn attention to the rarity of this technical indicator; in fact, it has only appeared on the chart twice before.<\/p>\n
History bears out its significance. When the blue diamond has appeared in the past, BTC has been prone to some explosive rallies. Take 2020 as a case in point: the signal was there ahead of Bitcoin climbing from $9,000 all the way to $69,000. A similar pattern in 2023 saw prices go from $23,000 to $125,000. With the latest reading, Davis sees it as a sign that the bearish period is over and a new bull run is underway.<\/p>\n
Lark Davis is of the opinion that, should history repeat itself, Bitcoin may climb to $550,000. A more prudent view would put the figure at $350,000. Either way, the numbers are derived from how the market has responded in the past to the blue diamond signal and current dynamics.<\/p>\n
There is on-chain evidence to support such a bullish case as well. The data indicates that a move to $90,000 could set off a wave of short liquidations and send the price higher still. Then you have the matter of crypto ETFs; the capital flowing in there points to an institutional appetite that could well be behind additional gains in the market.<\/p>\n
To put things in perspective, Justin Banks points out that the S&P 500 has gone up on 19 occasions in a row after midterm elections. He sees no reason why the same might not hold true for cryptocurrencies and thus foster a more favorable market.<\/p>\n
Then there is the matter of sentiment. A recent anonymous post on Reddit has put forward the notion that Bitcoin will set a new all-time high by October 6, 2026. One should be wary of such forecasts, but they have a way of getting under traders\u2019 skin and coloring their expectations.<\/p>\n
In the end, Lark Davis would have it that these are signs of a bull trend in progress, not the beginning of a bear market.<\/p>\n
This article reflects the channel author\u2019s opinion and is not investment advice.<\/em><\/p>\n Every call by Lark Davis and how it played out \u2014 in the BuyCrypt bloggers tracker<\/a>.<\/em><\/p>\n Source \u2014 Lark Davis: https:\/\/www.youtube.com\/watch?v=w3rqw_bXaO4<\/a><\/em><\/p>\n <\/p>\n Explore how you can practice trading Bitcoin and other cryptocurrencies risk-free with our realistic trading simulator. Practice trading risk-free<\/a>.<\/p>\n <\/p>\n