Analyst Awaits Bitcoin Breakout
Each and every day, the cryptocurrency market trades. More often than not, it seems to move in a random manner, with Bitcoin (BTC), Ethereum, or whatever other flavors of the week posting gains or losses without as much of an indication. But in the eyes of a prominent analyst, BTC moves more like clockwork than anything else.
Galaxy, a trader who sports tens of thousands of followers on Twitter, recently laid out why he believes that Bitcoin could begin a jaw-dropping rally in the coming months, citing historical trends to back his point.
The optimistic remarked that in 2013-2015’s market cycle, BTC tried to break out of a downtrending resistance three times, but was rejected each and every time. Following the second rejection saw a multi-month period of accumulation and consolidation, where the crypto asset found a relatively sturdy base and traded within it. Once the long-term resistance was about to depress BTC to new lows, the asset broke out, pushing new highs just a year or two later.
Interestingly, the same exact pattern seems to be playing out in the ongoing market cycle, as BTC has already failed to breakout three times, and could thus be in a zone of accumulation as it stands.
And with that, Galaxy remarked that if this pattern is observed, April 2019 will be the last month of $3,000 BTC… ever, as the cryptocurrency could begin its next cycle to head into 2020’s halving in that month.
Doused In Hopium?
While some claimed that Galaxy’s noticings were just filled to the brim with so-called “hopium,” with one noting that following this trend would be “too easy,” other prominent commentators agreed with the analysis.
Rhythm Trader, also known as Alec Ziupsnys on Crypto Twitter, drew attention to a chart he laid out that compared Bitcoin’s previous cycle to the one seen today. Like Galaxy, Ziupsnys made it clear that if trends are followed, BTC could very well be nearing a bottom as it readies for an eventual move past its $20,000 all-time high.
One commentator going by KALEO touched on trends too, explaining that as BTC has bottomed on parabolic support, which dates back to 2011 and has been cited by individuals like Cane Island Crypto (NVT creator). KALEO adds that considering the block reward reduction, which has historically propelled Bitcoin into monumental rallies, a new all-time high could come as soon as early-2021, meaning that now is the time to accumulate.
Then again, some were quite wary of Galaxy’s bit. What most cynics of this theory took issue with was the timeframe, as some explained that just by virtue of there being more money in these markets, cycles should be longer in theory.
Others touched on the Hyperwave theory, which states that BTC could revisit its previous all-time high at $1,200 before moving higher eventually.
Title Image Courtesy of Tim Mossholder Via Unsplash