The Bitcoin Bull Market Bounce Back

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Will a Bitcoin bull market ever return?

Bitcoin might be on the brink of a bull market in 2020, with the block reward halving coming up in May, some analysts are suggesting that it could surge to $100,000

Oliver Knight

The winter of 2020 will go down in history as being one of the most awe-inspiring and surprising bull markets the world has ever seen, with Bitcoin surging to $20,000 while a number of altcoins printed returns of 3,000% and more.

Onlookers on the sidelines watched in disbelief as colleagues and friends became overnight millionaires on the back of Bitcoin’s success.

But the euphoria and optimism during December 2020 was extremely short-lived as Bitcoin crashed back down to $5,900 in January before entering a gruelling two-year bear market.

Close but no cigar in 2020

Last year had all the signs of a potential bull market. All volatility and volume had dried up with a wrath of weak hands selling their crypto.

There was also of course the announcement of Facebook’s bespoke cryptocurrency dubbed Libra, which reinforced how blockchain technology is on the brink of mainstream adoption.

Bitcoin responded ferociously to the news as it rallied from $3,150 to $14,000 with in the first half of 2020, with some suggesting that a new all-time high being breached was only a matter of time.

But, as with many great things, the rally soon faded with Bitcoin proceeding to make a number of lower highs before sliding all the way down to $4,600.

Will 2020 be any different?

The start of 2020 has been fairly woeful for all seven billion people living on earth with a deadly virus spreading seemingly everywhere at an alarming rate.

This has, understandably, caused a downturn in capital markets with Bitcoin plunging dramatically in unison with the stock market.

But as the fears of Coronavirus begins to hopefully subside, the bounce in markets could be more staggering than before.

For an asset like Bitcoin to show resilience in a period of chaos and uncertainty will give it credit for the rest of its lifetime, potentially even turning those who once heaped scrutiny on the world’s largest cryptocurrency.

If the spread of Coronavirus begins to slow down this summer at the same time as the Bitcoin halving, it could well lead into a bull market for the rest of 2020 and the start of 2021.

As with every previous Bitcoin bull market, price targets are futile as it often exceeds even top analysts’ calls and predictions.

Regardless of anyone’s investment strategy, diversifying a portfolio to include an asset class as unique as Bitcoin and cryptocurrencies would be far from foolish, especially in light of the upcoming halving.

To read more about the Bitcoin halving, click here.

Disclaimer: This is not financial advice.

Bitcoin Bounces Back to $8K From Historically Strong Price Support

Omkar Godbole

Bitcoin Bounces Back to $8K From Historically Strong Price Support

  • Bitcoin has again bounced up from the 100-week moving average – a level which has acted as strong support in the previous two weeks and during the early stages of the previous bull market.
  • The defense of the 100-week MA coupled with the oversold conditions on the daily chart suggests scope for a recovery rally to $8,500.
  • The case for a bounce would weaken if prices find acceptance below the support level, currently at $7,753. That could pave the way for a slide to $7,200.

Bitcoin (BTC) has again defended historically strong price support near $7,700, keeping the hopes of a corrective rally alive.

The top cryptocurrency faced selling pressure and fell below $8,000 over the weekend, contradicting the possibility of a recovery rally above $8,500 suggested by a key technical indicator on Friday.

Even so, all is not lost for the bulls, as the widely-tracked 100-week moving average (MA) support has held ground. BTC almost tested the key technical line at $7,753 in the Asian trading hours before rising back above $8,000 around 12:20 UTC.

Notably, the long-term MA has been acting as strong support since the last week of September. Now, the bears’ repeated failure to penetrate key support may draw bids from short-term traders, yielding a corrective rally.

BTC’s defense of the 100-day MA may also excite long-term investors, as the MA had served as a base during nascent stages of the previous bull market, as seen in the chart below.

Weekly chart

Bitcoin picked up a bid at lows near $200 in August 2020 and found acceptance above the 100-week MA in December. The cryptocurrency then faced buyer exhaustion above $460 and fell back to the 100-week MA support in the week ended Jan. 17, 2020.

The support level, then located at $367, was defended in the following three weeks, after which BTC never looked back and went on to hit a record high of $20,000 by December 2020.

Essentially, BTC created a higher low along the 100-week MA seven months ahead of the mining reward halving, which took place in August 2020.

The price action seen this year looks very similar to the one seen in 2020. For instance, BTC bottomed out in the first quarter and rose to a high of $13,880 at the end of June before falling back to the 100-week MA.

More importantly, the latest defense of the 100-week MA comes seven months ahead of the next reward halving, scheduled for May 2020.

If history repeats itself, BTC could chart a solid bounce from the 100-week MA support over the next few weeks.

Moreover, many observers view the current dip as an opportunity to board the bitcoin feight train. For instance, George McDonaugh, CEO and co-founder of KR1 plc, the London-listed cryptocurrency and blockchain investment company, told CoinDesk Markets he expects bitcoin to surpass the all-time high of $20,000 in the first half of 2020.

The short-term technical charts are also calling a corrective bounce.

Daily and weekly chart

Bitcoin’s recent drop to sub-$7,800 levels is accompanied by falling trading volumes (above left). A low-volume drop is often short-lived.

Further, the oversold reading on the 14-day relative strength index (RSI) has gained credence due to signs of seller exhaustion near the 100-week MA. At the same time, the MACD histogram is producing shallow bars below the zero line, a sign of weakening bearish momentum.

All-in-all, a bounce to the 200-day moving average (MA) at $8,564 still looks likely. A violation there would expose resistance at $8,833 (June 2 high).

If prices find acceptance below the 100-week MA at $7,753, the case for a corrective rally would weaken and the cryptocurrency would likely drop to $7,200. Note that the weekly chart indicators are biased bearish.

As of writing, BTC is changing hands near $8,000 on Bitstamp, representing a 0.7 percent drop on a 24-hour basis.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

Read more about.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Bitcoin is Officially About To Enter a Bull Market

Bitcoin has been locked in a bear market for over two full years now, but according to a long-term trend and momentum signaling indicator, the first-ever cryptocurrency is about to officially enter a bull market for the first time since the crypto bubble popped.

MACD Signals That Bitcoin Is About To Officially Enter Bull Territory

As the saying goes, what goes up, must eventually come down.

And that’s exactly what happened to Bitcoin and the rest of the crypto market following the 2020 crypto bubble collapse.

After Bitcoin’s meteoric rise swept the world, investors flocked to the emerging asset in a FOMO-driven fury. The feverish buying activity drove the price of the cryptocurrency even further upward, causing it to go parabolic and reach an all-time high of $20,000 on December 17, 2020.

But since then, it’s been pretty much all downhill for crypto investors.

Bitcoin corrected by over 80%, a common retracement target for assets that have gone parabolic, after the said parabola breaks.

Altcoins fared even worse, with many falling over 90% in value from their all-time high prices.

But just as the year turned anew, Bitcoin and altcoins have been rallying, breaking free from downtrend resistance and spiking by over 40% in value in less than 30 days.

Well, aint that a sight for sore eyes – weekly MACD bullish cross, turned green on the histogram AND this time the MACD is high just below the zero line… about to enter official bull territory [positive]. pic.twitter.com/1XNr7dqKmE

The bullish momentum has caused some important trend-following technical analysis indicators to begin to turn upward, signaling that not only should Bitcoin’s rally continue in the near future, but it “officially” signals the start of the next bull run.

For this to occur, however, Bitcoin just has a few ticks to go on the monthly MACD. According to the indicator, Bitcoin is just below the zero line and heading upward.

Once Bitcoin breaks above the zero line on the monthly MACD, the bull market is on, and Bitcoin could take off like a rocketship towards the moon once again.

These Levels Must Be Breached For Full Bull Run To Begin

While indicators are beginning to signal that the crypto winter will soon be over, the cryptocurrency still has a few important levels to contend with and overcome to be out of a downtrend.

Bitcoin must reclaim highs over $10,000 on weekly price charts, and above that will still have to contest with resistance at $14,000 – back where the leading cryptocurrency by market cap was rejected in late June, starting a second, shorter downtrend that has only now just concluded.

If Bitcoin makes it above those levels and had the momentum of the MACD behind it, the cryptocurrency will likely be targeting its previous all-time high next.

Tony Spilotro

I’m Tony Spilotro. I’m an avid Bitcoin supporter and maximalist due to my distrust in society and concerns over privacy, but also a strong believer that XRP could end up being the most disruptive altcoin on the market. I’m an.

Bitcoin Bull Market May Have Ended, How Low Will BTC Go?

This week’s monumental market crash has resulted in Bitcoin dumping 20 percent in just a couple of days. Technical indicators are now showing that a trend reversal could be imminent and the end of the 2020 bull market may have just begun.

Bitcoin Bull Market Over?

Bitcoin could only manage a feeble climb to $8,640 over the past few hours which indicates that more pain lies ahead. The bulls have all left for hills leaving the bears gearing up to inflict more pain on crypto markets.

At the time of writing Bitcoin has pulled back below $8,400 but appears to be holding here for the time being. As yet there has been no fall into the $7,000 region but the longer BTC flails around current levels the more likely this will be.

Trader and analyst ‘Crypto Hamster’ noted that BTC has never dropped out of the Bollinger Bands in a bull market before.

“Bitcoin have NEVER dropped below the lower Bollinger Band on a bull market so far. Now it is at

8k is a bottom, or this is not a bull market anymore.”

Bitcoin have NEVER dropped below the lower Bollinger Band on a bull market so far.
Now it is at

8k is a bottom, or this is not a bull market anymore. $BTCUSD #bitcoin $BTC pic.twitter.com/1tNIoCzS9g

Confirmation of this trend reversal would be a death cross on the daily chart. This is still a while away yet, but the last time the 50 MA dropped below the 200 MA was in March 2020 and a year-long bear market followed.

The bearish sentiment seems to be spreading. Analyst Josh Rager pointed out that selling pressure on altcoins is still strong indicating that there will be no bounce from this level.

“Have seen more selling pressure after the breakdown of Bitcoin – people realize this isn’t likely to be a quick “v” reversal. I expect some alts to see new lows for this year against Bitcoin. Can lose 20%+ more as Bitcoin likely hits $7ks again”

Others are of the opinion that altcoins have already bottomed and Bitcoin’s losses could be their gains. At the moment BTC dominance is still over 70% according to Tradingview.com so this scenario is not playing out yet.

Since the beginning of the week crypto markets have dumped over $40 billion, or 16 percent. They could easily go sub-$200 billion again if BTC falls back to $7k. It is highly unlikely the altcoins will recover independently as they did two years ago.

Some analysts are predicting a drop below $6k which could make things really interesting.

“2 Months ago July the 12th-17th, I called off the Bull Run as one of the first. Not only that, as you can see I told you about targets between 7.4-5.5k.”

2 Months ago July the 12th-17th, I called off the Bull Run as one of the first. Not only that, as you can see I told you about targets between 7.4-5.5k.

Many saw reversals at 9-8k, but AS many until yesterday still thought we would see new highs.

Now look at what ppl say today. pic.twitter.com/xit7aPdcqN

It appears that most of the analysts are in agreement that there is still more pain to come for Bitcoin. The questions remain: how low will it go this time and how many will be buying the dip?

Martin Young

Martin is a Southeast Asia based info-tech, cyber security, and cryptocurrency analyst with 20 years working in web technology and media.

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‘Utter Horse Manure’; Bitcoin Community Scoffs at WSJ’s Bull Market Claims

In This Article

After some of the most chaotic weeks of trading in memory, US markets rallied pretty hard for a few days. So hard, in fact, that The Wall Street Journal rushed to declare a new bull market.

Given the state of the current global economy, many from the Bitcoin BUY NOW and wider cryptocurrency industry have been quick to call the publication out for the sensationalism. One called the suggestion that US markets were now bullish “utter horse manure.”

3 Million Unemployed Doesn’t Sound too Bullish…

In recent days, US markets clawed back some of the monumental losses they suffered as a result of the coronavirus global pandemic. Prior to Friday, global share prices were rising for three days — the first time since mid-February. [Yahoo! Finance]

Since the local low, the Dow Jones Industrial Average, which had been in an almost two-week bear market, posted gains of around 21 percent. This prompted The Wall Street Journal to describe it as a bull market.

By the percentage moves alone, the statement is correct. However, the backdrop for the price shifts makes the claim feel highly suspect.

Since its mid-February high, the Dow fell by more than 20 percent on a single day this month, putting it into bear market territory. The recent rises, possibly prompted by the US’ unprecedented economic stimulus program, do admittedly satisfy the popular definition of a bull market.

However, BeInCrypto recently reported on the carnage the coronavirus is creating in the US job market. More than 14 million have been laid off as a result of the pandemic, prompting a record breaking 3.28 million unemployment benefit claims last week alone.

Also in recent hours, the US officially registered more coronavirus cases in the nation than China. The United States now has the most number of infections on the planet. [CNN] President Donald Trump dismissed this statistic as being indicative of the US’ rapid testing program and nothing more.

With millions already working from home, no real end in sight to issues stemming from the pandemic, and more nations enforcing “lock down” measures, there is no telling how lasting the damage done will be. Right now, sentiment feels anything but bullish.

Bitcoin Industry Smells Bull…

Many Bitcoin industry observers were quick to call out The Wall Street Journal’s sensationalist take. CTO of Swan Bitcoin Yan Pritzker drew attention to the massive shutdowns across just about every industry and the soaring unemployment rate poised to rise even higher. He called the above tweet,

“Complete and utter horse manure.”

Complete and utter horse manure. The entire world economy is shut down or shutting down. Unemployment about to go through the roof. They’re printing money as if that fixes anything. Don’t believe the hype. Buy #Bitcoin https://t.co/ySv2htCW1V

Pritzker alludes to the massive stimulus efforts that will see each US taxpayer receive $1,200. Dismissing the money “printing” financing it as useless, he suggests that Bitcoin may serve as something of an economic life raft in these trying times.

Others too have called attention to the publication’s take, stating that the claims “won’t age well” or that the move is nothing more than a large dead cat bounce. Some highlighted the fact that strict isolation measures in force around the world mean that claims of continued market upside are questionable. Twitter user ₿obo (@lordofthebags) facetiously added:

“We all just gonna sit on the couch and long stocks all day?!”

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