There have been two differing opinions on where Bitcoin prices will go next. Some are calling for an imminent pullback and possible final capitulation while others are confident that this is the beginning of the new bull market and it will be all up from here on.
Major Similarities From 2015 Trend Reversal
Analyzing previous chart patterns and market movements offers a great insight into what could possibly play out next in the current situation. The charts from the 2014 – 2015 bear market and final trend reversal could almost be overlaid onto what has happened for the 2018 – 2019 situation.
There was a final capitulation in August 2015 when Bitcoin prices broke down to $200 for the second time that year. This marked a slump from a previous peak of over $1,100 which is around 82%. This time around the slump in December dropped prices to $3,200 which is around 84% down from the all-time high, all very familiar territory.
Since then we could almost say that the trend has reversed and that was the bottom. Bitcoin is currently up over 60% since its mid-December dump. Crypto markets in general have gained closer to 80% since their lowest levels late last year.
If that last dump is skipped as suggested by ‘CryptoHamster’ the bottom has definitely been in and we are on the way up from here on. Others predict that Bitcoin will test the 50 week moving average and pull back off it, returning to the 200 week MA as it did in 2015;
Either way the general sentiment for most of 2019 so far has been way better than 2018 where ‘crypto crash’ was one of the most popularly used terms to describe markets. At the time of writing Bitcoin had spent the best part of the past 24 hours trading above $5,200, level on the day. A clear uptrend has formed over the past week since the initial pump and a critical point will be reached at the end of this ascending triangle in a few days’ time when a major move is expected.