Bitcoin’s market cycle signals tool showed BTC price action copying history, possibly preparing to reclaim a key moving average before testing new highs.

Bitcoin is attempting to break through an “inflection frontier” that has historically triggered runs to new macro highs.

Data from onchain analytics platform CryptoQuant reveals that BTC/USD has begun a fresh battle with its 20-month simple moving average (SMA).

The 20-month SMA, at $87,165 as of Oct. 16, is the trend line around which the popular Bollinger Bands metric is constructed. This in turn forms the basis for CryptoQuant’s market cycle signals tool, which seeks to pinpoint Bitcoin’s position within its market cycle.

Bollinger Bands uses standard deviation to add an upper and lower band around the 20-month SMA. Currently, these sit at $121,640 and $52,694, respectively. CryptoQuant’s indicator describes the zone between the lower band and SMA as an “accumulation base,” while the SMA itself is referred to as an “inflection frontier,” a previous point of investor capitulation as price broke below it from above, most recently in December 2025.

With Bitcoin now preparing to challenge the capitulation zone from below, history shows that successful breakouts have led to new cycle highs.

“Just over a year after the all-time high (ATH) of $124,709 on October 6, 2025, the market has concluded its ‘reset,’” CryptoQuant contributor GugaOnChain summarized in a blog post.

While Bollinger Bands are not intended to offer buy and sell signals, market cycle signals sees “smart money” taking profit once BTC/USD reaches its upper band.

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