Bitcoin, 'Parabolic Rally' Follows End of 40-Month Copper Price Silence... Massive Surge Confirmed for H2?

▲ Bitcoin (BTC) / ChatGPT-generated image

With the manufacturing sector expanding for the first time in 40 months and a historic golden cross in the gold-to-copper ratio, the virtual asset market, including Bitcoin and Ethereum, has reached the entrance of a massive parabolic rally.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, stated in a video uploaded on May 5th (local time) that based on the Manufacturing Purchasing Managers' Index (PMI) breaking above 50 for the first time in 40 months and the confirmation of a bottom in the gold-to-copper ratio, the current period is the most crucial time to enter the virtual asset market. Gambardello emphasized that macroeconomic indicators are showing the same trajectory as immediately before past major Bitcoin (BTC) bull runs, and this combination of data will be a much stronger upward driver than a simple four-year cycle theory.

The phenomenon of the Moving Average Convergence Divergence (MACD) indicator rising above the signal line in the gold-to-copper chart has consistently appeared as a key signal immediately before previous surges in November 2012, October 2016, and September 2020. Gambardello noted that attention should be paid to the point where the 20-month moving average turns from resistance to support, and the relative strength of copper prices, as a signal of economic recovery, leads to massive capital inflows into the virtual asset market, which is a risk asset. In particular, the PMI entering an expansion phase after a 40-month contraction period, coupled with advancements in AI productivity, heralds a bull market within a new economic structure.

Bitcoin's Relative Strength Index (RSI) on the weekly chart has already passed the oversold zone and formed a bottom, and it is in the process of breaking through the downtrend line on the daily chart. Gambardello identified the 200-day moving average, located around $83,400 to $83,500, as the most critical short-term resistance level. If Bitcoin strongly breaks this range, it will enter a full-fledged uptrend, with the ultimate confirmation of a bull market being its stabilization around the 50-week moving average near $95,000.

Ethereum (ETH) is also reaching the completion phase of an ascending triangle pattern, increasing the possibility of a rebound across the entire altcoin market. Gambardello predicted that if Ethereum surpasses the resistance zone between $2,400 and $2,700, strong buying pressure targeting $3,400 will flow in. Ethereum's technical breakout is expected to act as a signal for capital to spread to previously overlooked altcoins, revitalizing the overall market.

The virtual asset market is facing an unprecedented opportunity as improving macroeconomic indicators align with favorable technical indicators. With Bitcoin and Ethereum poised to break through major resistance levels and open new price horizons, institutional investor participation is expected to accelerate. Market participants should focus on the broader upward trend and consider strategic capital allocation rather than reacting to short-term volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*