Bitcoin is the largest success story in Cryptocurrencies. Despite the volatilities in 2018 that has led the price to slump from a high of $20,000 in 2018 to a low of $6,600 in October 2018, Bitcoin still remains to be a much sought-after Digital Asset. Overall, the Coin has had a price increase of 150,000% from its listing in July 2010 to date.
Bitcoin’s Historical Progression
In its lifetime, Bitcoin has had mixed bear runs and bull runs, the longest bear run was in much of 2014 and 2015. However, in these streaks of bear runs and bull runs, gains have suppressed losses and Bitcoin managed to soar to highs of $20,000 as at January 2018. The year 2018 has been the exact opposite where Bitcoin bullish gains have been low and have had shorter runs that have resulted in a general loss. This has brought in undue media attention resulting in a widespread public and government responses.
The Future Of Bitcoin As Per Market Indicators
Technical perspectives of Bitcoin price movement predictions have been mostly counterintuitive. This means that historical data-based analyses have often misled prediction in an abnormal way. There are many examples to support these case one of these being the descending triangle that often represents a bearish forecast.
The descending triangle has often broken, either way, the bearish forecast has often been replaced by bulls over the course of Bitcoin’s cycle. This begs the question of whether market analysts have been viewing the triangle in an incorrect manner. Using this analysis, the current triangle is descending, an indicator of a future bear run especially in early 2019. Going against the laws of statistical analysis to defeat counter-intuition problem can beget a forecast that predicts a bull run for BTC in the coming year.
Secondly, there is a case for Bitcoin bullish breakout. BTC relationship between the descending triangle pattern and the 200-day moving average (DMA) is often significant.
The descending triangles are created when lower highs of a series of price movements are connected at angles of 45 degrees and then broken down left to right to create a primary trendline. On the other hand, a baseline of the triangle is created by connecting lower lows to form a triangle horizontal line. The triangle then points to a gradual trend of the price. The triangle indicates a bearish trend but instead adopts a bullish trend.
Meanwhile, the 200 DMA establishes a bearish BTC price momentum. However, history suggests that this trend is turning positive in 2019 despite the general triangle indicator. It is, therefore, possible that there will be a bull run as the two indicators correct each other.
There Are Still Possibilities Of A Bearish Breakout
The 200 DMA and the descending triangle point out to a bearish trend and they can also be trusted as credible given the odds where they have turned out to be true. This is because there may be market volatilities that trigger sell-offs crush as the 2018 negative publicity from the media. However, if this happens, there will be a level of support zone on the $4,900 to $5,400 range. Meanwhile, the forecast for a bullish run is more likely and compelling.