Over the past few weeks, Bitcoin (BTC) has found itself consolidating in the low-$7,000s, holding this key support region as bears threaten the cryptocurrency’s demise. While this consolidation has been bullish, in that selling pressure has abated for weeks, setting the stage for a bullish reversal, a market cycle analysis by a popular crypto trader suggests that the pain is just beginning for Bitcoin.
Related Reading: Could Bitcoin Price Press Higher as PlusToken Liquidations Slow?
Bitcoin Ready to Head Under $5,000?
Popular trader Rampage recently noted that Bitcoin is showing signs that it is in the midst of a repeating cycle, one seen twice in the asset’s history.
The cycle is marked by a parabolic and rounded blow-off top, consolidation near said top, a strong drop to test a historical uptrend, a secondary top formed below the primary blow-off top, then a collapse under the aforementioned historical uptrend to enter a bear market phase.
Should this pattern be of current relevance, Bitcoin is in the midst of forming a secondary top, and is thus poised to break through the historical uptrend line at ~$5,000 to enter a potentially multi-year-long bear phase.
— Rampage (@Thrillmex) December 14, 2019
It isn’t only Thrillmex that is charting an entire collapse of the bullish structure that Bitcoin has found itself in over recent years.
Per previous reports from NewsBTC, the application of the Wall Street Cheat Sheet “Psychology of a Market Cycle” chart to Bitcoin’s long-term price trajectory demonstrates that the market is in a “complacency” phase, and is on the verge of entering a deep depression, one that could bring the cryptocurrency well under where it is even now, despite the existing -50% performance seen since June.
For all of us I sure hope this isn’t the cycle we’re really in… pic.twitter.com/opLCQ3h48l
— James (@coinzada) November 11, 2019
There’s also a controversial trader that claims that Bitcoin’s directionality implies it will go “to the $1,000 range.” The analyst explains that this would be “good for crypto” as it would “destroy investors and projects,” claiming that’s exactly what the space needs.
Related Reading: What’s the Best Way to Drive Bitcoin Adoption? Billionaire Says Crypto Giveaways
Do Bulls Have Any Hope?
Bearish sentiment aside, bulls still have things to hold onto. Per previous reports from this outlet, top industry venture capital firm Blockchain Capital (investor in Coinbase, Ripple, Abra, etc.) revealed that it expects for Bitcoin to “blow past” its $20,000 all-time high sometime next year.
Blockchain Capital partner Spencer Bogart remarked that this is likely to take place due to a confluence of factors: Bitcoin remains a very useful network from a transactional standpoint, “processing $1 billion to $3 billion worth of transactions daily”; there has been growth in and the adoption of a number of BTC and cryptocurrency fiat on-ramps into the industry; and public sentiment regarding Bitcoin implies that the American public still sees BTC as a good technological innovation, a useful invention, and something to be invested in.
Related Reading: Bitcoin’s Reaction to This Critical Level Could Determine How It Trends In 2020
Featured Image from Shutterstock
Credit: Source link