A popular crypto analyst thinks that the price of Bitcoin (BTC) may follow a pattern that occurred at the end of previous bear markets.
The analyst, known by the alias TechDev, says BTC’s price action over the past year mimics Bitcoin’s sharp corrective moves during the 2014 and 2018 bear cycles. told.
TechDev emphasizes that as Bitcoin did in previous correction phases, it initially followed the scenario where it bounced off the 50-week exponential moving average (EMA) before encountering resistance at the 20-week EMA. The crypto strategist also states that the last collapse of the previous two bear markets occurred after the 20-week EMA fell below the 50-week EMA.
“- A to 50-week EMA
– 20 weeks [EMA] on B
– Final decrease in C after 20 weeks below 50 weeks
– Does it expire after 20 weeks drop below 100?
I wonder what will happen if this year’s BTC correction continues to follow the plan of the last two.”
So far, the analyst said that Bitcoin is following the plan of the previous bear markets and a close above the 20-week EMA will likely confirm the end of the correction.
“BTC fixes this year:
volume drop [evet]
Bullish divergence (positive divergence) on the MACD indicator [evet]
One capitulation (sudden drop) + 50-week EMA bounce [evet]
Above 20 weeks B, C easily break 50 week EMA [evet]
C consolidation at 100 weeks + rejection at 20/50 weeks [evet]
C capitulation experienced by falling below 20/100 weeks [evet]
C bottom near A’s -0.618 fibonacci retracement [evet]
A close over 20 weeks likely confirms the ending.”
Bitcoin is trading at $20.603, down more than 70% from its all-time high at the time of writing. Meanwhile, the 20-week EMA is hovering above $33,000.
TechDev said its cash portfolio has “decreased significantly” but hasn’t changed its long-term investment thesis.
“I believe the bitcoin and crypto market will hit new highs before the next Halving.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.