Bitcoin just regained a key price trendline after its longest absence since March 2020
Bitcoin (BTC) may be consolidating at $47,000, but longer timeframes show just how significant this week's mini bull run has been.
According to the Golden Ratio Multiplier (GRM) metric, on March 27, BTC/USD reclaimed an essential support zone for securing further upside.
GRM is a long-term observational metric for Bitcoin price action. It is used to determine whether Bitcoin price growth (or the opposite) is overstretched relative to its overall maturity as an asset in terms of adoption.
It does so using a log scale, which comprises Bitcoin's 350-day moving average (DMA) and Fibonacci sequences to give multiples of that trendline.
As such, BTC/USD dropping below the 350DMA is a now conspicuous sign of outlier price action, as the vast majority of days have been spent above it since mid-2019.
As Bitcoin matures and adoption spreads, logarithmic extremes become less pronounced.
"The Golden Ratio Multiplier is an effective tool because it is able to demonstrate when the market is likely overstretched within the context of Bitcoin's adoption curve growth and market cycles," analyst Philip Swift, who created the tool in 2019, explained at the time.
March 2020 COVID-19 crash, for example, had marked Bitcoin's longest recent trip below the 350DMA, but 2022 managed to beat it by three months to two.
As such, the first three months of this year look like a clear exception to the rule when it comes to GRM.
Another use for GRM is naturally tied to predicting Bitcoin market cycle tops. In 2019, Swift estimated that the next top would be roughly three times the 350DMA.
"If this decreasing Fibonacci sequence pattern continues to play out as it has done over the course of the past 9 years, then the next market cycle high will be when price is
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