Is the Bitcoin Correction Over?
Ahead of the launch of Bakkt’s Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch.
As of the time of writing this, the Bitcoin price has fallen to $9,900, leaving the cryptocurrency below the key $10,000 support for the umpteenth time in a matter of a few weeks.
This collapse has only perpetuated fears that the cryptocurrency is currently trending negative, especially after the reaccumulation phase that started in early-July.
Analyst Chonis recently noted that Bitcoin’s daily chart has just exhibited an array of bearish technical indicators: a 50-day moving average and 100-day moving average bear cross, a bearish expansion between two short-term moving averages, and a potential loss of the lower Bollinger Band.
To make things worse, Bitcoin is currently in the midst of a giant bear fractal. As reported by Ethereum World News previously, an analyst depicted that BTC lost the support of the upward trendline of a long-term head and shoulders pattern, exactly like it did in 2018.
#BTC $BTC #BTCUSD
I know some of you won't gonna like this one, let me say first that I'm still bullish on #Bitcoin, but this doesn't mean I can't post a bearisch chart.👇Just something to keep in mind. pic.twitter.com/FlJOHPCzdK
— ᴠᴇʟᴠᴇᴛ 🆙 MAXi 🌍 (@888Velvet) September 20, 2019
History repeating would see Bitcoin approach the quickly-receding trendline, which currently sits around $11,000, before being rejected. Should this rejection occur, Bitcoin will likely take a strong tumble, potentially to reenter the $8,000 region and below to satisfy the fractal in full.
However, Bitcoin may be trending towards support and reprieve at long last. On Saturday night, prominent analyst Crypto Hamster remarked on Twitter that the Mayer Multiple — a measure named after Trace Mayer that is defined by putting BTC’s current price over the 200-day moving average — is currently entering a zone where corrections usually bottom. Hamster thus concluded that the cryptocurrency market — if it is really in a macro bull trend, that is — is in a bottoming process as this writer composes this.
Indeed, as depicted in the below chart, effectively all previous corrections in the 2016/2017 macro bull trend decidedly ended around the 1.2 Mayer Multiple level.
$BTCUSD, 1D.
Mayer Multiple is well below its moving average – in the zone where corrections usually bottom. So, it is either already over, or we will hit that 1.09 value. $BTC #bitcoin pic.twitter.com/ng5Rll2hjt— CryptoHamster (@CryptoHamsterIO) September 22, 2019
Per Ethereum World News’s calculations, at worst, Bitcoin will fall to the high-$8,000s or low-$9,000s, or else the abovementioned support would be negated.
This isn’t the only evidence corroborating the sentiment that Bitcoin will fall no lower than $9,000s in this cycle, or even potentially ever again. According to CryptoKea’s analysis of the same metric, the “lows [could] be behind us in a few days” — this low being a maximum of $9,200. He got to this by overlaying Bitcoin’s price action prior to the 2016 halving on the current chart, using MM readings to determine price ranges.
Title Image Courtesy of Andre Francois Mckenzie via Unsplash