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Home / Business / Analyzing bitcoins break over $ 4200, is it a trap?

Analyzing bitcoins break over $ 4200, is it a trap?



Pause of $ 4,200 resistance level represented a pivot point for bitcoin. Many respected analysts believe the bottom is in for the BTC, while some others predict that it may sustain more losses. Whether the former or the latter is right, it is noticeable that optimism grows among investors as the market continues to surge – the perfect conditions for a tyrant.

Respecting Analysts Bottom

Since the week of February 4, 2019, bitcoin has gone through a bull stamp that has taken it from $ 3,400 to about $ 5,500 after hitting December in December at $ 3,200. Peter Brandt, a 40-year-old commercial veteran, suggested that this is a sign of a new "parabolic phase."

Brandt, author of the "Diary of a Professional Goods Trader, "claims that the bullish momentum that BTC has experienced in recent weeks could have marked the bottom.

"Advance the last couple of weeks decisively completed a rising triangle bottom. The hard work of catching the big turn may be over-now it's time to be patient as this new bull trend can be fully developed."

Brandt is no stranger to predicting future valuation of various assets. After the bull race that took Bitcoin to $ 20,000 in December 2017, he expected early 2018 to go below $ 4,000.

Now the commercial veteran sees Bitcoin at $ 50,000, but he foresees that a withdrawal could come first :

"My longer perspective is whether it's low or a retest of the same from December 2018, another massive parabolic advance will happen, and take the BTC to $ 50,000 over the years to come."

Mayer Multiplier calls for a wild 2021

On the same line, Trace Mayer, an early crypto investor, has beaten bullish . Based on his own indicator, Mayer Multiple (MM), he believes that Bitcoin may have hit itself.

"If history and future rhyme will then 2021 become a wild year with $ 100,000 to $ 250,000 in short bit."

Mayer indicator is the result of dividing the price of BTC over its 200-day moving average. When it goes below 1.0, it's a sign of a bear market period, but when it goes over 1.0, it signals a trend reversal that CryptoKrea, a crypto dealer and analyst, explains.

MM has succeeded in predicting the last two Bitcoin bear's market bottom, and it looks like painting the same image again. This principle encourages Mayer to support Brandt's idea that the bottom is in, and BTC can prepare for a massive move to the upside.

Calling Bottom on Bitcoin Misery Index

Since the beginning of 2019, "King of Cryptos" has definitely revived bullish feeling from the entire cryptosphere, and Thomas Lee, head of Fundstrat Global Advisors, is nothing exception.

Mr. Lee believes that Bitcoin can increase $ 10,000 once a year:

"If S & P 500 made a 2.5 standard deviation, move [as it has done year-to-date] and investors look for vol [volatility] as builds a basic bitcoin bit. "

The Fundstrat chief analyst makes the case a market ground that formed on the December 3 low of $ 3,200. The bear market could have ended using the Bitcoin Misery Index (BMI), an indicator created by Lee that scores from 0 to 100 how "miserable" Bitcoin investors are based on the coin's price and volatility. The current BMI value is 89, which is a positive sign because only in beef markets is the value greater than 67.

For Thomas Lee, some of the basic market forces have been converged on bullish page, so mainstream adoption will "Not necessary for the next round."

Calling for $ 3000 prices

On the other hand, a few analysts suspect that the bear market is not over and that requires under $ 3,000 prices.

Tone Vays, a former Wall Street analyst, agrees with Peter Brandt that $ 50,000 could be a reasonable target for Bitcoin's next noise, but he differs from the overall feel of the bottom.

Talking of Ivan at Tech's Good Morning Crypto Show, Vays said:

"My worst-case scenario is $ 1300. That doesn't mean Bitcoin has to get there, but for me, $ 1,300 has been a realistic goal in over a years, and it's still a realistic goal. "

Mr. Vays, former VP of JP Morgan, believes that a clear sign that the bear market is over will be given when BTC dominance is significantly higher. He refers to it as the "Bitcoin decoupling", which is when "King of Cryptos" goes up while other coins go down, hold down, or go very slowly up; For what happens, he expects lower prices.

"When I see altcoins pump harder with the Bitcoin rally, it tells me that the market has not bottomed out and that the bear market is still with us."

Halving ] Could push BTC to new heights, but Lows More Likely First

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The creator of CryptoSCam, a podcast about the latest scams in the cryptocurrency sphere, suggests that the upcoming halving may lead to a rise in the market value of the BTC six months before the event. However, he is convinced that "under $ 3,000 prices are more likely than over $ 10,000 prices at this time."

Tyler Jenks, president of Lucid Investments Strategies, also maintains the idea that Bitcoin returns lower despite the recent bullish price action.

Jenks invented and developed Hyperwave Theory through many years of research, and is a technical tool for analyzing the monstrous movements that take place in a macroeconomic environment. Based on this theory, a cycle is characterized by seven phases that determine the direction of the trend. After the cycle is completed, the price tends to return to the initial phase that started the movement.

Conceptual hyperwave with thanks to Lucid Investment Strategies

The leader of Lucid Investment Strategies believes that Bitcoin has gone through a Hyperwave cycle and is now on its way to returning to phase 1, which can happen by quick spike below this level in a wick.

BTC / USD on Bitfinex

For the long-term future, Jenks believes that the ever-growing debt and disparity of distributed wealth in regions will soon force an alternative solution, and Bitcoin may be one of them. If this cryptocurrency is able to replace sovereign currencies and act as a reserve currency in the world, it can climb up to "$ 10 million per coin."

So if any of these analysts are right or not, it is reasonable to believe that the market bottom is closer than ever. We must keep in mind that the market bases are often defined by panic sales or surrender, and the $ 3,200 desembers low could have been the first sign on the bottom.

As history tends to repeat itself, one might argue that a similar scenario to what the market is going through right now happened in July 2015. Then it seemed as if the bottom was inside and the bear market had ended but after that optimism began to grow among investors, BTC came back aggressively and liquidated many traders out of their bullish positions.

This type of price action is known as a beef catch, which is basically a false signal that an asset returns after a strong rally when it actually continues to decline.

Bitcoin, currently ranked # 1 by market value, is up 1.79% over the last 24 hours. BTC has a market value of $ 95.31B with a 24-hour volume of $ 14.52B.

Chart by CryptoCompare

Bitcoin is up 1.79% over the last 24 hours.

Filed Under: Analysis, Bitcoin, Price Watch, Trading

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