Bitcoin Must Bounce or It Could Return to a Bear Market
While Bitcoin’s price action may be sporadic, its price action fits patterns.
One pattern identified by a historically accurate crypto analyst suggests that Bitcoin is on the verge of disaster if it slips any lower. The trader, who predicted BTC would undergo a bounce in March, recently posted the chart below.
The chart shows that Bitcoin has bounced off the depicted technical level whenever it has been in a true bull trend. The loss of that level marked a return to a bear market:
Chart of BTC's macro price action since the middle of 2013 with analysis by crypto trader Litecoin Jack (@BTC_JackSparrow on Twitter). Chart from TradingView.com/symbols/BTCUSD
The abovementioned trader isn’t the only one thinking that Bitcoin must bounce or risk a return to a bear market.
One trader shared the chart below earlier this week. It shows that Bitcoin cleanly bounced off the depicted moving average on at least four separate occasions. Also, during the bear market last year, the level acted as a key point of resistance:
Chart of BTC's price action over the past few years with a moving average analysis by crypto trader Ledger Status (@LedgerStatus on Twitter). Chart from TrendSpider
A Bounce Is Likely
Analysts believe a bounce for BTC is likely, which should help assuage fears of a loss of the abovementioned technical level.
Mike McGlone of Bloomberg said that “gold and Bitcoin” are expected to come out ahead:
McGlone wrote earlier this year that BTC could end the year around $20,000.
Photo by Chanelle on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Price Should Hold This Level Or Risk a Bear Market Redux
Originally from Bitcoinist.com https://ift.tt/3bMsCap
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