There’s no doubt that the market sentiment is changing. Many altcoins have put up massive gains the past month. This is often seen when has stabilized. Through technical and psychological analysis of market conditions, we’ll look into multiple reasons why I believe that has bottomed and the bear market has ended.
Looking at the , we can see that has begun to to form an . Two touches of the bottom , and two tests of the overhead resistance at $4,250. A breakout of this formation should lead to a rally to $5,200, which coincidentally lines up with the downtrend line that has been formed since $20,000 AND the 0.618 . has shown much harmony with the 0.618 fib level throughout its lifespan. We can also see on the chart, that the 50 and 100 day moving averages are set for a “Golden Cross”, a favorite technical buy indicator among investors and traders. If we take a look at the snapshot below, we can see that has found STRONG support on the 200 week moving average. This is one of the most important indications that the bear market has ended. Why you ask? Well, if we look at the 2014 bear market, found its bottom on the 200 week moving average. That is where the tide turned, and that is where the run up to $20,000 began.
Touching on more of the psychological aspects of the current market cycle, smart money and professional traders are going to see these important indicators as a BUY signal. Smart money waits for confirmation on a trend change while using multiple technical indicators for analysis before opening a position. When looking at the last bear market that ended in January 2015, there wasn’t necessarily a catalyst that turned the market . However, there was a catalyst that propelled to the extreme highs of $20,000 in December of 2017. The hype and positive news surrounding the entire industry was astounding. New tech, ICOs, real world partnerships, and exchanges with fresh ideas. People were selling everything, taking out loans, and taking out mortgages on their homes, just to buy into the mega bull . Will we ever see these kind of prices again? The question remains. No doubt, cryptocurrency will need a new catalyst to propel and altcoins to new heights.
This analysis has been a positive outlook on the future of , especially this upcoming mid term. There are many perma bears that will tell you that is dead, and we’re heading to $0. Perma bears are perma bears for a reason, as they are most likely individuals who got burned buying into the crypto mega hype of 2017. And there’s many of them. With no real news coming out, I wanted to spread a positive outlook into current market conditions. As a close friend and business associate once told me, “thoughts become things.”
Published at Sun, 10 Mar 2019 04:25:13 +0000
