Bitcoin traders remain optimistic about a significant BTC price breakout, despite months of consolidation, with on-chain data bolstering their confidence.

Bitcoin (BTC) appears to be gearing up for another surge to all-time highs, similar to its performance in March, according to on-chain analysis.

On June 2, popular trader and commentator Alan Tardigrade highlighted a crucial comparison between the current BTC price action and that of mid-February. In his post on X (formerly Twitter), Tardigrade pointed out that Bitcoin could be replicating the conditions that led to its previous all-time highs.

On-Chain Metrics Suggest Another Bitcoin Ascent

Earlier this year, Bitcoin required less than a month to reach new all-time highs when a classic on-chain indicator, the moving average convergence divergence (MACD), signaled a bullish trend. Now, a similar setup is unfolding, suggesting strong potential for BTC price gains.

Tardigrade emphasized this in his analysis, stating, "Bull Flag and MACD Bullish Cross at the same time. After a breakout to the Bull Flag, $BTC will surge higher."

The MACD, a key indicator of trend strength, is currently building positive bars on the three-day timeframe after a period of negative momentum that began in early April. Concurrently, BTC/USD is consolidating within a bull flag pattern. Historically, an exit from this pattern to the upside, combined with a bullish MACD, has led to new all-time highs within weeks.

Market Observers Eye Bullish Indicators

The three-day MACD has been closely watched by market analysts tracking the current Bitcoin bull market. Data from Cointelegraph Markets Pro and TradingView confirm that a dip into the "red" territory in late December preceded the market volatility associated with the introduction of the United States’ spot Bitcoin exchange-traded funds (ETFs).

Despite the current sideways price action, Tardigrade and other market commentators maintain a bullish outlook. Some analysts caution that Bitcoin may continue to trade within a range for several more weeks, but this hasn't dampened high price predictions. Fundstrat Global Advisors has projected a BTC price target of $150,000 for 2024, while traders in June are eyeing a target of $85,000 or more.

Optimism Amidst Consolidation

Bitcoin has been consolidating below its March highs for nearly three months. Despite warnings of continued rangebound trading, optimism remains high. Consensus among analysts suggests that the most "parabolic" phase of the bull run has yet to begin, leaving room for substantial price increases in the near future.

In conclusion, the convergence of the bull flag pattern and MACD bullish cross indicates that Bitcoin could be on the brink of another all-time high. With the current on-chain metrics mirroring previous bullish trends, traders are eagerly anticipating a significant breakout.