Analyst: Bitcoin is not & # 39; Hungover & # 39; Again, but don't expect a gathering goal yet

As traders have begun to realize that the news of the economic status of Tether Limited (USDT's issuer) and Bitfinex is not too harsh, Bitcoin (BTC) has recently stabilized. In fact, analysts have argued that the cryptomark's lack of response to the seemingly bearish news shows strong basic strength, and may actually be a precursor to a beekeeping.

Related reading: Bitcoin price reaction to Tether Fiasco May Signal Strong Fundamental Strength

However, a number of charters have recently taken to Twitter to note that unlike popular belief, Bitcoin is not yet ready for a collection.

Bitcoin Could See One. More. Drop.

Since BTC has become a floating, negotiable asset, it has followed short-term and long-term trends, most of which can be mapped and extrapolated for pricing purposes. A popular technical analyst, Brian "The Rational Investor" Beamish, claims that if Bitcoin follows its four-year cycle again, a downward move may soon come in.

As shown below (chart with Beamish), Bitcoin's price action in 2017 was obviously a "blow off peak" and 2018 was the "back fire", two macro trends seen in the previous bubble. If Bitcoin continues to follow its trend, 2019 will see the BTC rally tremendously, but not without another influx of capitulation first. Beamish suggests that a move to near December 2018's level will come in the coming months, possibly as soon as June.

And he is not alone in enduring this belief. Through a Trading View post, Magic Poop Cannon, a somewhat poorly named analyst who predicted Bitcoin's fall to $ 3,200, noted that BTC's current chart structure is almost identical to what was seen before the "second bottom" in 2015. (For those who Not familiar with the crypto market history: in 2015, BTC fell below $ 200 once, and then affected $ 200 again months later.]

Magic explains that Bitcoin's current price action, the 50-week exponential moving average, 50 and 200 days move average, Fibonacci retracement levels, and Relative Strength Index (RSI) readings all look equal in the structure of what was seen in mid-July 2015. And thus he wrote that if BTC traces its historical trend, the golden cross will be formed), A $ 5,000 to $ 5,300 trading area will hold until May 7 (check) and will collapse to $ 4,025 by the end of May. He explained further:

"Based on this comparison, from a technical point of view, I have absolutely no reason to believe that we will not go back to at least 0.618 [Fibonacci retracement] just over $ 4000. People who think we should shoot over the big resistance around $ 6,000 are delusions. It took months of testing for us to break below that level. It will take months of testing for us to break out over it. "

  Featured image from Shutterstock 

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