bitcoin May Pull Back Before Rally
Over the past few days, the crypto market has entered an eerily calm state, with () barely budging on a day-to-day basis. However, a leading analyst claims that this may end soon, recently predicting that volatility will soon pick up once again, whether we like it or not.
Galaxy, as the analyst is known, recently remarked on Twitter ’s current price action and volume profile all point towards the fact that will mirror the price action it did in late-December to early-April, in what is known as a “fractal.” If replicates how it acted in the aforementioned time frame, will fall by $500 to ~$4800 in the next 72 hours, slowly decline to the $4,600 to $4,800 range to hit the lower bound of an ascending channel, then embark on an eventual rally to $6,800. Seemingly referencing his comments about , he adds that this move will result in a “typical correction” for , followed by a stronger recovery.
Galaxy isn’t the first analyst to have proposed the idea that will see a pullback before an eventual move to new year-to-date highs.
Tom Lee, the head of research at Fundstrat, recently suggested that may see a short-term pullback, but the bottom is in and is in a . Perfrom this outlet, Lee drew attention to his firm’s Misery Index, which aims to capture the average sentiment of a holder, to back this remark. The permabull explained that as the Misery Index hit a reading of 89 on April 2nd, when rallied past $5,000 straight out of left field.
As Lee explains, since 2011, a Misery reading of over 67 came only during bull markets. However, when Misery peaked above 67, , on average, fell by 25%, as investors looked to take profits. A 25% drop from here would mean falling to $4,050, which was where the asset was at prior to the ongoing rally.
Chonis, too, recently hinted that a pullback might be inbound before a true rally. Per Chonis, took five attempts to break out of its accumulation zone, exiting its bottom range on its sixth rally. With ’s recent foray past $5,000 only being its really second or third rally in the bottoming range ($3,000 to $6,000), Chonis suggested that we may be “early in the bottoming,” meaning that a few more months of fake outs could ensue.
But Is It Really Time For Crypto To Take A Chill Pill?
Interestingly, however, some are sure that isn’t going to pause from here. In fact, some are sure that the rally will continue, no holds barred. As by trader B. Biddles, ’s one-week chart looks effectively identical to the bump-and-run reversal bottom chart depicted in the “Encyclopedia of Chart Patterns” by Thomas Bulkowski.
The two charts are so similar that the analyst who discovered this correlation wrote: “this means that bears are f**ked.” Biddles is referring to the fact that if the textbook-esque BARR bottom plays out for , will soon enter an “uphill run” — a move that would catapult crypto assets back into a bull rally.
Title Image Courtesy of Austin Distel Via Unsplash
Published at Sun, 21 Apr 2019 05:42:05 +0000
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