bitcoin has firmly planted itself within the upper-$3,000 region over the past several weeks and has continued struggling to break above the low-$4,000 region. Because BTC has failed to garner any significant buying pressure over the past several weeks, some analysts believe that a drop back to its 2018 lows of $3,200 is inevitable.
Despite this, one technical indicator that is based on bitcoin’s geometric and arithmetic mean dynamics signals that the cryptocurrency may already be through the worst of the bear market and entering the early stages of the next bull market.
Analyst Claims Next bitcoin Bull Run May Have Already Begun
Over the past several months it has become increasingly clear that 2018 low that exists in the low-$3,000 region is a strong level of support for the cryptocurrency. Despite this, the crypto has not been able to surge far beyond $4,000 without facing significant selling pressure that forces it back down to the $3,000 region.
Although this may be seen as a negative signal to many analysts, one popular cryptocurrency analyst on Twitter recently mapped out bitcoin’s entire price action from the perspective of its geometric and arithmetic mean dynamics, which show that each bull run and proceeding crash share a similar trend.
While looking at the 2014-2015 bear market, bitcoin underwent a very similar trading pattern to what it is currently undergoing, which may signal that BTC is currently in the very early stages of the a bull run.
“Signal based on geometric / arithmetic mean dynamics suggests next #bitcoin bull market might have started,” planB, a popular crypto analyst on Twitter explained.
Signal based on geometric / arithmetic mean dynamics suggests next bull market might have started .. 🚀
— planB (@100trillionUSD)
His recent analysis of bitcoin based on the above chart comes shortly after he claimed that there are many that will prevent bitcoin from ever dropping below $2,000.
Why will not drop under $2k:
1) Miners already capitulated (difficulty -25% Nov/Dec)
2) Too close to the Halving (14 months)
3) BTC never dropped below geometric mean ($2750)
4) BTC never dropped below 50% of stock-to-flow model ($5500)
5) RSI bottomed at (42) now rising— planB (@100trillionUSD)
Analyst: bitcoin Likely to Drop Below 2019 Low in Near-Future
Although planB is currently bullish on bitcoin, other popular analysts share a different sentiment, with SalsaTekila noting in a recent tweet that he expects BTC to plummet below $3,330 – which is the crypto’s current 2019 low – before finding a high liquidity zone.
“Remapped my chart, the most logical target in terms of liquidity would be below 3330$, which is the current 2019 low.”
/12 Remapped my chart, the most logical target in terms of liquidity would be below 3330$, which is the current 2019 low.
— SalsaTekila (JUL) (@SalsaTekila)
SalsaTekila further noted that bitcoin is currently pushing up against a price level that has proven to be a level of resistance over the past several days, which could mean that a further drop is inevitable.
“Note $BTC on finex, pattern break into a liquidity pool, max FOMO opp… Could be wrong, got few other metrics that are confluent (private observations) but ultimately calling tops is low strike-rate so don’t copy me.”
/15 Note on finex, pattern break into a liquidity pool, max FOMO opp.
Could be wrongs, got few other metrics that are confluent (private observations) but ultimately calling tops is low strike-rate so don't copy me.
— SalsaTekila (JUL) (@SalsaTekila)
Traders and analysts speculating about further BTC losses or a potential bull run will only be proven right or wrong with time, and in the meanwhile, traders should look towards how bitcoin continues to respond to the low-$4,000 region as a signal of which direction the crypto will head in the near-term.
Featured image from Shutterstock.
Published at Thu, 07 Mar 2019 22:00:40 +0000
