After a solid run for the past three months plus, Bitcoin’s price suddenly turned bearish a few days ago. This has made many to wonder if the bears are finally back or if this is just a price correction which will take the cryptocurrency to higher heights.
There are several issues to note about the recent price decline of Bitcoin. Bitcoin was overheating in terms of the rapid increase in price.
A study of the highest price of all time which took place on the 17th of December, 2017 shows that whenever Bitcoin as an asset wants to correct its prices, it will first go through a series of highly volatile price movements then hit a series of either resistances or supports.
Once that occurs, the real price movement which the currency will go through shows up. If you study the chart patterns from the time Bitcoin started to peak in 2017, you’d see some very familiar recurrences (that is if you are into chart patterns).
A head and shoulders pattern formed, suggesting that the uptrend had indeed come to an end.
Guess what? It did!
We then had one of the longest periods where no one knew really what was happening with either Bitcoin and the crypto verse in general.
This was crypto winter where even the Night-King himself couldn’t tell where Bitcoin prices were going. Then all of a sudden, the ticker comes back to life!
Price start moving upwards again, edged on by institutional investors and huge projects such as Facebook’s Libra. Everyone starts to move in one direction making the price of Bitcoin to start moving up and up!
These kinds of crowd motivated price moves always tend to heat up the asset in question. Then we now have a slightly bearish trend and price corrections and the whole World is wondering what next?
In truth, the trend is bearish because it only confirms one thing which the right people have known all along: A major Bull run is coming for Bitcoin!
This is because within the next few days and weeks we shall be seeing a reverse head and shoulders which shall correct the downward trend set in motion in 2017. As such, exponential price gains are in the offing.
This is because whenever a head and shoulders chart pattern occurs, the reverse is always around the corner. Many pundits who know how volatile BTC is, know this and are watching to see it happen.
It’s just not clear to those who haven’t understood the rhythm and pattern of Bitcoin. In truth, Bitcoin is going to still fall below $9,000 briefly before finding its support level to form the reverse pattern.
After it finds the Support level, Bitcoin will not only takeoff; it shall surge past many of the World’s largest assets by trading volume in US Dollars; including Gold and Crude Oil!
So the reign of the Bitcoin bear is not a long one. At least not this time!
What do you think? Will the Bitcoin bear reign for long?
Let us know in the comment below!