Bitcoin price is finally exhibiting price action that suggests it could be building a base in which a final local bottom could set.
However, according to one crypto analyst, the first-ever crypto asset is likely to take another last-minute $1,000 dive to retest lowers before going on the real rally, offering crypto investors one final shakeout to hold through before the bull run returns.
Final Shakeout Expected Before Bitcoin Price Finally Bottoms
As the year comes to a close, Bitcoin may finally be once again returning to the bullish momentum it had during the first half of the year. During that time, Bitcoin exploded out of its bottom trading range below $4,000, resulting in a multi-month parabolic rally and as much as a 350% return on investment from through to peak.
Related Reading | Bitcoin Price Reaches Fair Market Valuation, While Costs of Production Rise
But after Bitcoin price set a high for the year, it’s been steadily falling deeper back into a downtrend that has shown no signs of slowing down until the last few days, when the crypto asset appears to have begun to build a base, much like what occurred for price action when Bitcoin bottomed out near $3,100.
After such a low was reached, Bitcoin pumped to get traders bullish, then had a final $1,000 plunge to shake out trigger-happy investors one more time before the rally really began.
Should the same thing occur, Bitcoin may suffer yet one more crash down $1,000 back into the $6,500 range before making its final push out of the current trading zone.
Last time we saw reversal to the upside, we first faked with 2 green candles above 50 EMA, and had another $1000 further decline before real reversal started once MACD crossed bullish. Exact same week. pic.twitter.com/l7ttugqtGc
— h⬡dl21⬡⬡k (@h0dl2100k) December 23, 2019
But Crypto Asset Could Indeed Be Building a Base
Mark Dow, the former IMF economist that famously shorted Bitcoin’s 2017 peak, has been telling crypto traders to watch for signs that a base was forming before considering taking a new position in Bitcoin.
These early signs that a base may be building are finally here, and the final plunge down could be the final test of support that’s necessary to give bulls enough conviction and confidence to make yet another strong push higher – one that’ll propel the leading cryptocurrency by market cap up out of the $7,000 range and back into the $8,000 range.
At that point, eager crypto traders could consider Bitcoin’s downtrend to be reversing but still should remain careful and cautious until highs from earlier in the year are retested and reclaimed.
Related Reading | Bitcoin Surges to $7,200 By 11% In Massive 1 Day Reversal, As Traders Consider Bottom
If Bitcoin price can reclaim $10,000 and make a reattempt at prices above that level, the crypto asset could very well be back on its way into its next full run. But not before a final $1,000 shakeout makes things very confusing and scary for those hoping to buy the bottom.
Feature image from Shutterstock
Let’s block ads! (Why?)