Bitcoin hasn’t done all too well in the past few months, falling from $14,000 in June to as low as $6,400 in December of last year. This meant that at the bear trend’s worse, Bitcoin was down 55% from the June peak. This dramatic downturn saw a number of prominent anti-crypto commentators come out of the woodshed to tout their rhetoric.
Per previous reports from Ethereum World News, American hedge fund manager Mark Dow said that BTC remains in a “textbook echo-bubble” formation, drawing attention to a chart that shows Bitcoin’s inability to close above its 20-week and 50-week moving averages, implying bearish price action and a potential repeat of 2018’s capitulation event.
Dow’s latest assertion comes shortly after he wrote on Twitter that he fully expects for Bitcoin to die a “slow, grinding death” that will be “punctuated” by ” spoofs and FOMO spasms of decreasing frequency and intensity.”
The thing is, the recent downturn in the cryptocurrency market hides an optimistic truth: year to date, Bitcoin is still up 94%, having traded around $3,700 on January 1st, 2019. So, don’t heed the calls by the aforementioned individuals that Bitcoin is in an “echo bubble” and “on its way to $1,000 or lower.”
As pointed out by cryptocurrency commentator TraderKoz, Bitcoin’s performance in 2019 means that it has outpaced effectively all other vaguely mainstream asset classes over the past seven months. The commentator specifically looked to the S&P 500, up 29.09% in 2019, and the price of an ounce of gold, which finished last year up 18.3%.
Next time you want to say something about how crypto is dying, don't forget what we accomplished this year. $BTC in 2019: +94.09%
SPX in 2019: +29.09%
Gold in 2019: +18.30%We are not dying. We are thriving. Bring it on, 2020! pic.twitter.com/DxayjmDki2
— TraderKoz (@TraderKoz) January 1, 2020
Can Bulls Keep This Going?
The question then remains: Can bulls keep up the bullish momentum heading into 2020 and beyond?
Cryptocurrency analyst Philip Swift noted in a recent thread that there are a confluence of signs suggesting that the bull run is just starting for BTC: the cryptocurrency has held above its 350-day moving average, Bitcoin Network Momentum is starting to bounce off traditional bear market levels, and the Golden Ratio Multiplier suggests an explosive rally is right on the horizon.
7/ Combining all that with Golden Ratio Multiplier to look forward, likely we will have a big move up in Jan/Feb taking price up to the region of the 350 x 1.6 (green line), which will be approx $12-13k by then.
After a brief pause around there…number go up! pic.twitter.com/vpkn4tFFOC
— Philip Swift (@PositiveCrypto) December 5, 2019
The fundamentals corroborate this. Fundstrat’s Tom Lee noted that the rally in equities will increase buying demand for Bitcoin: Lee remarked that strength in equities should set the stage for risk-tolerant investors to start siphoning capital back into Bitcoin and other markets deemed “risky” by classical investors.
Lee also drew attention to the impending block reward reduction/halving and the fact that China is embracing blockchain technologies as ways to corroborate his bullish outlook for 2020.
Photo by Laura Agustí on Unsplash