is at a critical juncture. The price of the first ever cryptocurrency has far enough away from the current bear market low of $3,150 to give bulls confidence that the worst is behind them, but is still shy of a break of $6,000 that would confirm the bear market is over.
As traders, investors, and analysts review bitcoin price charts to better determine if the bottom is indeed in, one particular crypto analyst has discovered similarities between bitcoin’s price chart structure and that of textbook examples of a bump-and-run reversal bottom. Examples from the textbook provided by the analyst could help crypto traders understand what two scenarios could play out in the coming days for bitcoin.
Crypto Analyst: bitcoin BARR Bottom Means “Bears Are Fucked”
At the start of April,, breaking through resistance at $4,200 and skyrocketing toward $5,000 where it is currently ranging. The powerful move took the price of bitcoin nearly $2,000 higher than its current bear market bottom, restoring bullish sentiment throughout the market and .
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s, analysts, and more, are all for the price of the leading cryptocurrency by market cap. The current bottom structure has been referred to by crypto chartists as an ascending triangle that broke up, an Adam and Eve bottom, and more. However, one particular analyst claims the price structure in bitcoin more closely resembles a “textbook bump-and-run reversal bottom, and even offers up the textbook examples for comparison.
. Literally a textbook BARR bottom. Hint: This means bears are fucked.
— B.Biddles (@thalamu_)
Crypto trader B.Biddles shared a bitcoin price chart via side-by-side with a textbook figure representing what a bump-and-run reversal bottom looked like in the price of Bethlehem Steel Corp shares. The structure is described as a steep “drop-off” following a lead-in phase. After that, the price moves in a narrow range before pushing higher, creating a rounded “bump” bottom before making a “run” upward.
The analyst says that the chart structure means “bears are fucked.”
But Bears Still Have Time to Send bitcoin Back to New Lows
However, bears are not done putting up a fight just yet, as the price of bitcoin has been stopped in its tracks and is currently consolidating above $5,000.
Important to note: the pattern is still undfolding and could fail. That said, combined with bullish fundamentals, adoption, and positive press, my leaning is still upwards.
— B.Biddles (@thalamu_)
The trader also shared another example from the textbook, this time showing what the pattern might look like if it fails, and warns crypto investors that the current price patter on charts is still “unfolding” and “could fail” just like the textbook example from Apple Computer Inc.
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In the example, the ascent is rejected and a throwback to the trendline leads to further downward movement. If bitcoin is rejected, bearish sentiment should once again reign supreme, and a plummet down to new lows would be very likely as the market began to panic sell once again.
Feature image from Shutterstock
Published at Tue, 16 Apr 2019 20:00:40 +0000
