Bitcoin price action He’s back in the low $30,000 range, after another failed attempt to reach $40,000 over the Father’s Day holiday. The effort from the bulls is getting weaker and weaker, yet resulting in a “death cross” on the daily time frames. But can they simply pretend to be weak, ready to put pressure on short traders and send prices higher again in a jiffy?
The stage is set so well, that price action and several key technical indicators closely mimic the behavior around one of the greatest pumps in Bitcoin history. Is this what is coming in the coming days?
Is the Bitcoin Bull Cycle Over or Is This Simple Consolidation?
Markets are cyclical Trends can span years, months, weeks, or even days. Technical analysts look for the first signs of a trend and aim to take advantage of this trend for as long as possible.
It is clear that the Bitcoin uptrend from the bottom of Black Thursday is over, and there is now confusion in the market as to whether the downtrend has begun, or if the more dominant underlying uptrend remains intact.
Related reading | The Missing Component of a Complete Bitcoin Reversal
If Bitcoin’s biggest bull market ends now, it is among the shortest in its history. Analysts predict cycles to lengthen, which adds credence to the theory that the upward cycle has not yet been broken.
Instead, the price action of the top cryptocurrency appears to be instead Imitation of artistic patterns After the last major summit, in June 2019.
Multiple signals match the last major post-rally death cross | Source: BTCUSD on TradingView.com
The fractal offers several technical factors to support the record-breaking reflexivity rally
After the bitcoin price collapsed from its June 2019 high, there was a sharp downward movement followed by consolidation. The same thing is running again now, and while this is not enough to pay much attention, the fact that many trading indicators show a similar setting can illustrate this What will come next.
Every major summit since Bear The bottom of the market was followed by the completion of a five-wave impulse on the basis of Elliott Wave Principle. On the way back down, the RSI and LMACD made several bottom tops and bottoms, following a curved resistance line to the downside.
Related reading | Why Bitcoin Could Return to Lows Before Gaining Momentum
Both cases too Death cross on the diary, which turned into a history-making pump the last time the setup was made. Just like the previous time, the daily RSI lost support which triggered another rally lower and forming a bullish divergence on the price chart.
Last time, the LMACD also crossed temporarily for one close per day, followed by an explosive move higher above the death cross – Over 40% move within two days.
A similar percentage rally for Bitcoin would send the cryptocurrency back above $45,000 and stand in the direction of the $50,000 resistance. Returning above this level will confirm the continuation of the bull market, while another deeper crash cannot be ruled out.
Even a much deeper correction, according to the Elliott wave, could reach $14,000 and the bull market could remain uninterrupted.
Featured image from iStock Photos, Charts from TradingView.com