Long-term Bitcoin price indicator has turned bearish, suggesting its price
Long-term Bitcoin price indicator has turned bearish, suggesting its price may be bottomed out and a new bull run could just begin this year
At press time, Bitcoin’s 50-week moving average has dropped below the 100-week MA, which confirms a bearish crossover soon. However, long-term bearish crossovers tend to happen at the end of a big bear move, with the prices rallying soon after since MAs are based on the past data.
For example, the 50-week MA responds to price actions which were seen over the last 12 months, and the 100-week MA tracks much older data. Thus, the bearish cross of the two is the indication of a prolonged bear market.
The leading cryptocurrency takes a great effort on the part of the bears in order to push the 50-week MA below the 100-week MA. ultimately, the bear market is often exhausted by the time the crossover is assured, that seems to be the case with Bitcoin.
The 50-week MA fell below the 100-week MA in April 2015, which is 3 months after the bearish market stalled at lows near $150.
The digital currency spent the following five months while consolidating in an array of $200-$300 before breaking into a fresh bull market in October 2015. More interestingly, all this occurred a year prior to bitcoin underwent its 2nd mining reward halving in July 2016.
With the 3rd reward halving due in less than 12 months, Bitcoin history looks to be repeating itself. The latest bearish crossover has occurred nearly 3 months after the sell-off from December 2017 highs ran out of steam near $3,100.
Thus, there is a strong hope that Bitcoin will start a new bull run later this year by violating the bearish lower highs pattern presented by the trendline sloping downwards from December 2017 highs.
So, there is a strong possibility that BTC will begin a new bull run later this year by violating the bearish lower highs pattern, as represented by the trendline sloping downwards from December 2017 highs.