Bitcoin Bears Are “F**ked” If Trend Pans Out, Claims Crypto Analyst

Bitcoin Bears Are “F**ked” If Trend Pans Out, Claims Crypto Analyst

According To Pattern, Bitcoin Might Have Bottomed

Take a look at the two images below. On the right is an excerpt from the “Encyclopedia of Chart Patterns” by Thomas Bulkowski, which shows something called a “bump-and-run reversal bottom,” or BARR bottom for short. On the left is Bitcoin (BTC)’s one-week chart stretching from last August to now. Notice anything?

Well, if you couldn’t tell, the pattern depicted on the right, which shows a series of higher lows, a massive sell-off on the back of monumental selling pressure, a zone of accumulation, an eventual bullish breakout past a declining trend line, and a subsequent rally is looking much like Bitcoin right now. In fact, save for a few discrepancies in the accumulation zone and the time span, the charts are effectively identical.

The two charts are so similar that the analyst who discovered this correlation wrote: “this means that bears are f**ked.” Biddles, as the trader is known, is referring to the fact that if the textbook-esque BARR bottom plays out for Bitcoin, BTC could return to $5,000 next week before entering an “uphill run” a move that would catapult crypto assets back into a bull rally.

In subsequent tweets, Biddles continued to cite charts from Bulkowski’s technical analysis bible to explain that by many measures, BTC might be on the verge of a rally. He explained that Bitcoin’s one-day chart is currently exemplifying signs that BTC is trapped in an ascending triangle, which is a bullish pattern marked by higher highs, an overarching resistance, and slow price action. With volume declining, an act that is bullish per Bulkowski, Biddles confirmed that if Bitcoin closes above $5,320, BTC could be in for a rally to a higher region.

Some Aren’t All Too Convinced

While the textbook charts show that Bitcoin is ready for a bullish breakout, potentially to new year-to-date highs, some are sure that a pullback is to be seen. As reported by Ethereum World News previously, trader Magic Poop Cannon recently told investors that BTC may be on the verge of collapse. Through a Trading View post, the trader opined that BTCs rally from $3,400 in January to $5,450 just last week painted half of an enormous evening star doji pattern, adding that the movement has been in textbook formation thus far.

For those who missed the memo, an evening star is a reversal pattern, in which there is a large uptrend (seen last week), stagnation (this week), and reversal. A doji candle is one in which its opening and closing price are effectively the same, signaling indecision in a market. If this evening star Doji pattern plays out as Magic expects, Bitcoin could see a 15% to 20% drop to $4,100 in the coming ten days, and then sell-off even further, potentially to the mid $3,000s, to finish this formation.

Technicals aside, one analyst is convinced that due to historical precedent, BTC will drop. In a three-part thread posted recently, an analyst going by Jonathan noted that from his perspective, Bitcoin could crash to $2,000 in the near future, due to the fact that the majority think the bottom is in. He adds that investors incessant, even religious devotion to being bullish on Bitcoin is bearish, as trading against the crowd often proves to be successful in markets.

Photo by Aleksi R?is? on Unsplash

The post Bitcoin Bears Are “F**ked” If Trend Pans Out, Claims Crypto Analyst appeared first on Ethereum World News.

16.04.2019 / 18:30 59
Crypto Analyst: Bitcoin Price Chart Shows Textbook Bump and Run Reversal Bottom Crypto Analyst: Bitcoin Price Chart
Bitcoin price is at a critical juncture. The price of the first ever cryptocurrency has rallied far enough away from the current bear market low of
Bitcoin Traders Eye $5,600 As BTC Suddenly Ticks Higher: Can The Rally Continue? Bitcoin Traders Eye $5,600 As BTC
Over the past few hours, Bitcoin (BTC) and its altcoin brethren have begun to quietly rally. As of the time of writing, BTC is up 3.5% in the past 24
Bitcoin Accumulation Could Continue Until July if Previous Patterns Repeat Bitcoin Accumulation Could Continue
The best time to accumulate is when prices are low. Even though Bitcoin has had a huge rally this week the digital asset is still 75% down from its
Bitcoin Won’t Be $3,000 Cheap Again, Crypto To Trend Higher In April Bitcoin Won’t Be $3,000 Cheap Again,
Analyst Awaits Bitcoin Breakout Each and every day, the cryptocurrency market trades. More often than not, it seems to move in a random manner, with
Bitcoin (BTC) Price Watch: Bullish Reversal Pattern Forming? Bitcoin (BTC) Price Watch: Bullish
Bitcoin Price Key Highlights Bitcoin price appears to be gaining some traction off its recent bounce, possibly forming another double bottom. This is
Bitcoin (BTC) Price Watch: Reversal Pattern and Breakout Bitcoin (BTC) Price Watch: Reversal
Bitcoin Price Key Highlights Bitcoin price staged a rally sharp enough to break past the falling trend line on the 4-hour chart. In addition, a small
Comments (0)
Add a comment
Comment on