Bitcoin, the world's largest cryptocurrency by market capitalization has enjoyed a staggering price increase in excess of 150,000 percent since it was first listed on exchanges back in July 2010.
Post-breakdown, the bulls managed a short-term rally before being rejected by the 200-DMA, which held price under for 1.2 years.
It's clear that the price of bitcoin being under the 200 DMA firmly establishes the market as bearish, and this time around is no exception.
While it does offer insights into the relationship bitcoin has with the 200-DMA, it is key to remember that the patterns also vary in scope and size, which is usually telling of the price action that follows.
Based off the previous 1.2 year bear run, it's possible bitcoin could turn bullish by early next year, especially if all fundamentals are taken into account, as suggested by CNBC cryptotrader, Ran Nuener.
On the flipside, bitcoin has been staring down a bear market for the last 7 months and has dropped below the significant 200-DMA beginning Feb. 5.
Traditional patterns such as descending triangles are still worth viewing in bearish terms since the onset rush from 2017/18 was unprecedented and the subsequent sell-off that followed has seen bitcoin drop 67 percent to date from its all-time-high in December 2017.
As stated earlier, price falling below the 200 DMA has proven to be a sign the market has officially turned bearish.
A bearish trend combined with a bearish price pattern, the descending triangle, creates an ideal technical set up for further depreciation even though bitcoin tends to negate the bear view.
View Bitcoin has ignored the bearish implications of the descending triangle in the past, so there is merit in considering a bullish resolution.
Do These Indicators Suggest a Bitcoin Price Rally Early in 2019?
Published on Oct 16, 2018
by Coindesk | Published on Coinage
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