On October 25, Bitcoin recorded history when witnessing the third-largest increase during its lifetime, a rise of 42% on the day. Most people think this is the result of the “Xi Jinping Effect” after the Chinese President made a positive comment on the blockchain.
However, time goes by fast when you’re having fun, less than a month later, the price of Bitcoin has lost its motivation to increase and was overwhelmed by the bears, pushing BTC to a low of nearly $ 7000. According to the long-term charts and the moving average (MA), it may be near the end of the correction.
Shortly after the reduction, three million new USDC were minted. Maybe this was done by a whale to buy the dip in a discount market. But, for this tactic to succeed, the Bitcoin price will have to be near the bottom.
Popular analyst CryptoBull states that the potential crossover of the 50 and 100-week moving averages is of significant importance for Bitcoin price.
50/100 week ma bullish crossover in 1-2 weeks.
The last time that happened:
Price was $430 (down ~62% from ATH)
A few months before the 2nd halvingNow:
Price is $7,600 (down ~62% from ATH)
A few months before the 3rd halving pic.twitter.com/CrZi37YrfG— Crypto₿ull (@CryptoBull) November 21, 2019
Bitcoin Movement 2015
Bitcoin reached a high of $ 1177 in November 2013. After that, the price started a prolonged downtrend. In April 2015, a bearish cross occurred between the MA 50 and 100 weeks.
Later, when the price of Bitcoin began to rise, a bullish cross between similar MAs occurred after 385 days. It appears 60 days before the second halving event (vertical line).
Source: Trading View
Movement 2018
In December 2017, Bitcoin’s price reached ATH of $ 19,764. After that, it started a long-term downtrend, marking the most awful crypto winter in history.
434 days later, another bearish cross occurred between the MA 50 and 100 weeks. A shorter period compared to 2015. If we keep the same ratio between bullish/bearish crosses, we will see a bullish cross between similar MAs after 322 days. The calculation of time will be in January 2021.
It is approximately 120 days before the scheduled date of halving on May 15, 2020.
Source: Trading View
This view is also in line with the “Dave the wave”, a popular trader on Twitter. He tweeted that we are about to end the correction, and Bitcoin price will gradually recover by 2021.
He used curved trend lines to reduce the range of Bitcoin price movement for BTC. Both resistance and support lines have been confirmed many times. The current price is very close to the support line.
Why is $ 680 the key?
Source: Trading View
The chart above shows macrotrend since the beginning of 2015. The trend marks the bottom of the bear market in December 2018, when prices soared from there. And the price rose to a high of $ 14,000 in June 2019.
The move from $ 3,000 to $ 14,000 is also bounced back from the same Fibonacci level. This shows the importance of the golden ratio.
The price of Bitcoin must maintain the green zone (which is the ordering block in the range of $ 6,000 to $ 6,800) as a support on the weekly time frame.
Only if this maintained, prices are willing to expand the overall trajectory. The next potential price increase target is $ 14,000-20,000.
To do that, BTC needs to clear the zone of $ 7350-7400. And the price will head towards $ 7800 and hit a temporary bottom.
If the price fails to surpass $ 7,400, it will signal the next downside pressure. The $ 6,600-6,800 area is again a potential long-term entry, where the lows are swept and regain liquidity.
Bitcoin price today. Source: Coinmarketcap
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Read more:
- Mark Dow – A Former IMF Economist Says “Bitcoin Is Dying”
- $179,3 Million Worth Of BTC “Long” Liquidated On BitMEX After BTC Drop $7.350