After gold’s explosive breakout, market analysts are now watching Bitcoin (BTC) closely

According to crypto analyst Dan Gambardello, the current market setup for Bitcoin is strikingly similar to a familiar historical pattern that previously led to significant gains.

After gold’s impressive breakout, market analysts are now turning their attention to Bitcoin (BTC), anticipating the next stage of the market cycle. According to crypto analyst Dan Gambardello, the current market setup for Bitcoin bears striking similarities to a familiar historical pattern that previously led to significant gains.

The same way gold surged in late 2020 before Bitcoin followed, current charts suggest a repeat may be unfolding. If true, this could mark the early stages of a full-blown crypto bull market, pulling major altcoins like Ethereum and Cardano along for the ride.

Gold’s Signal and Bitcoin’s Setup

Gold appears to have completed a parabolic move, signaling a potential transition to Bitcoin. Throughout history, this shift occurred in late 2020 when gold reached its peak and Bitcoin subsequently took off.

Looking at the current gold charts, there’s a structural pattern closely resembling the early stages of Bitcoin bull markets. This parallel suggests that Bitcoin might be setting the stage for its own breakout.

Bitcoin has already breached its previous all-time highs. However, analysts note that the real parabolic phase has yet to begin. The asset is steadily trending upward in a structured manner, indicating the bull cycle is still warming up. This sustained upward movement could be setting the stage for a powerful surge that hasn’t quite materialized yet.

Altcoins: Lagging but Gaining Momentum

While Bitcoin is grabbing headlines, altcoins like Cardano (ADA) and Ethereum (ETH) are also showing signs of strength. Cardano is testing key resistance levels, notably the 20-week moving average.

Holding above this point often marks the shift from a bear to bull market. ADA has also bounced off crucial support and is attempting to break through an inverse head and shoulders pattern. If the momentum persists, a push toward the $1 mark seems highly plausible.

Meanwhile, Ethereum is nearing a major trendline last touched during its 2020 consolidation. A successful break above the 200-day moving average could signal strong bullish intent. However, early signs of RSI bearish divergence suggest potential temporary weakness unless invalidated by vigorous price action.

Patience and Psychology in Market Cycles

The broader altcoin market remains 36% below its all-time high, contrasting with a 253% distance during the last bull market setup. This disparity suggests altcoins may be lagging behind Bitcoin and gold but could soon make a rapid recovery.

As the market cycles through different phases, it’s crucial for traders to adjust their strategies accordingly and remain patient. In the early stages of a bull market, new traders often enter the market quickly, eager to capitalize on the gains. However, as the market matures, the pace slows down, and traders become more selective in their trades.