History May Signal That Bitcoin is Nearing a New Bull Cycle
Since early-2018, Bitcoin and cryptocurrency investors alike have been caught in what seems to be a large sea full of endless waves comprised of price drops, fake news, accounts of fraud, and countless other examples of occurrences that have shaken out the weak speculators. This has left behind a community of investors who either ardently believe in the technology, or suspect that another wave of speculators will drive the markets back to, or above, their previously established all-time-highs.
Although the persisting bear market has been incredibly tough for neophyte investors, an analysis of historical trends may signal that another bull market is imminent.
Analyst: The Future of Bitcoin Lies in the Study of the Past
Recently, a theory regarding the future of Bitcoin – which will undoubtedly lead the direction of the entire cryptocurrency markets – has surfaced on various social media platforms that uses historical trends to predict the future of market movements.
Galaxy, a popular cryptocurrency analyst on Twitter, recently discussed the possibility of an imminent bull run based on Bitcoin’s historical trends, telling his nearly 50,000 followers that the “future lies in the study of the past.”
“We’re approaching the 420 day mark which ended the 2015 bear market and if history repeats itself, we’re moving towards several months of accumulation and a new bull cycle starting mid-late 2019,” he noted while referencing a chart that shows the 2014 bear market which lasted until 2015.
Although the 2018 bear market has not yet lasted quite that long, the patterns between the two markets do appear to be strikingly similar, which could mean, as Galaxy noted, that Bitcoin will enter into an accumulation period that will be proceeded by another parabolic bull market.
Technical Indicator May Support This Theory Regarding an Imminent Bitcoin Bull Run
Recently, a widely used technical indicator gave traders a rare signal that Bitcoin could be on the brink of making a massive price move that could mean that Bitcoin will see significant buying pressure in the future.
A recent report noted that the GTI VERA Bands Indicator, which uses trend data over large time frames to give traders insight into future price movements, flashed a rare signal that the cryptocurrency is nearing an inflection point that could lead to a major price movement.
This was also supported by another widely used technical indicator, called the Directional Movement Index (DMI), which recently flipped positive for Bitcoin for the first time in several months, signaling that the digital asset is seeing growing buying pressure despite its relatively sideways movement over the past several weeks.
While speaking about the validity of the DMI’s trading signal, Mati Greenspan, the senior market analyst at eToro, said that Bitcoin has a long way to go before talk of a bull market can be validated, further noting that there remain multiple strong levels of resistance that the cryptocurrency must break through.
“In technical analysis this makes these levels very strong. But I think only once we see a strong break above 5,000, 6,000, if we get above 7,500, that’s when people start to turn really bullish,” Greenspan explained.
Although the validity of the aforementioned technical indicators and the theory regarding an imminent bull run remains to be seen, they do offer battered investors a glimmer of hope that a price rally could be on its way.
Featured image from Shutterstock.
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by Cole Petersen on January 15, 2019 at 05:30AM