In technical analysis, the long-term Bitcoin chart suggests that the bottom is near and we may soon experience exponential raises at the rate of previous market cycles.
Cryptocurrency analyst and trader @davthewave stated that the Bitcoin price is approaching a buy zone — based on the logarithmic growth curve. The growth curve can be traced since Bitcoin’s inception in 2011.
Let’s take a closer look at this curve and see what does it mean for future Bitcoin price movements.
Very near the buy zone of the logarithmic growth curve. pic.twitter.com/u0lOXhKQHM
— dave the wave (@davthewave) November 19, 2019
Bitcoin’s Logarithmic Curve
The growth curve is found by using curved trend-lines in order to connect the highs and lows of the price. It has been validated several times and the Bitcoin price has never traded outside of it.
On interesting development is the movement of the moving averages (MA). In 2015, a bearish cross between the 50- and 100-week MAs preceded a drop to the support line. Afterward, a bullish cross between the same MAs preceded the next bull market.
The MAs are acting in an identical manner since 2018. A bullish cross is very close to occurring.
Also, the Bitcoin price has never traded below its 200-week MA. Since the MA is below the support line, it makes it less likely that the latter will be broken.
Looking closer at the support line, we can see that it currently is at $6000-$6500. While there is no immediate support there, this area also represents the 0.786 Fib level. Therefore, unless we experience an upward bounce here, a decrease towards $6000-$7000 seems likely.
Even in the case of a bounce, the Bitcoin price should eventually fall back to this support line — which, then, would likely be higher. The line is at $7000 in January 2020.
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