The Bitcoin price initiated another rapid decrease on November 22 — reaching lows close to $7000. According to long-term charts and moving averages (MAs), it may be nearing the end of the correction.
A short time after this decrease, three million new USDC was minted. It is possible that this was done by a whale in order to make large purchases in a bearish market. In order for this tactic to be successful, however, the Bitcoin price would have to be near a bottom.
Well-known cryptocurrency trader and analyst @cryptobull stated that the possible bullish crossover of the 50- and 100-week moving averages (MA) holds significant importance for the Bitcoin price.
50/100 week ma bullish crossover in 1-2 weeks.
The last time that happened:
Price was $430 (down ~62% from ATH)
A few months before the 2nd halving
Price is $7,600 (down ~62% from ATH)
A few months before the 3rd halving pic.twitter.com/CrZi37YrfG
— Crypto₿ull (@CryptoBull) November 21, 2019
Bitcoin’s 2015 Movement
The Bitcoin price reached a high of $1177 in November 2013. Afterward, the price began a long downtrend. In April 2015, a bearish cross between the 50- and 100-week MAs transpired.
Afterward, when the Bitcoin price began to increase, a bullish cross between the same MAs occurred after 385 days. This was only 60 days prior to the second block-reward halving (vertical line).
In December 2017, the Bitcoin price reached a high of $19,764. Afterward, it began a long-term downtrend.
After 434 days, a bearish cross between the 50- and 100-week MAs occurred. This was a shorter time period than the one in 2015. If we keep the same ratio between the bullish/bearish crosses, we should see a bullish cross between these same MAs after 322 days, on January 2021.
This is roughly 120 days before the projected date of halving.
Support & Resistance
This view is also consistent with that posted by @davthewave, who suggests that we are nearing the end of the correction and the Bitcoin price will gradually recover in 2021.
Next year, recovery and accumulation… pic.twitter.com/At3HYfQ7Ag
— dave the wave (@davthewave) November 22, 2019
He is using curved trend-lines to reduce the scope of the Bitcoin price movement for BTC. Both the resistance and support lines have been validated several times. The current price is very close to the support line.
Since June 24, the Bitcoin price has been trading inside a descending channel. The channel coincides with the support line near $6500-$7000.
According to the tweet, the Bitcoin price will eventually break out, then initiate a gradual upward movement at the rate predicted by the support line — before the eventual acceleration of this increase.
To conclude, we believe that Bitcoin will soon reach a bottom and begin a gradual increase. This hypothesis is supported by previous moving average movement and long-term trend-lines.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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Source: Be In Crypto