Last week, Bitcoin (BTC) suddenly shot higher, surging from $7,300 to $10,500 in under 24 hours’ time in a monumental move.One minute, the cryptocurrency was down in the doldrums; the next, it was trading sky-high in a move that the optimists said would lead to a rally to $20,000 and beyond.
Despite the lofty sentiment, Bitcoin has cooled since then.As of the time of writing this article, the cryptocurrency is trading at $9,000 — some 15% lower than the recent high — and seems poised to break down further over the next couple of days.
One analyst has gone as far as to say that unless BTC clears the $10,300 region, which is an important historical level, there is no need to get too excited.In fact, he went as far as to say that the recent move is “just a bearish retest,” and that “new local lows” are still on the table.
But a key technical pattern that may indicate that the long-term Bitcoin bull case is back on is poised to form in the coming weeks, something that may fuel investors leaning long on digital assets.Related Reading: A Chinese Blockchain Day? October 24 Proposed as Day to Celebrate Tech Behind Bitcoin Impending Bitcoin Signal Implies Long-Term Uptrend Forming
Trader and CoinTelegraph contributor FilbFilb recently noted that while analysts are making much ado about a death cross, investors should not be worried about Bitcoin’s prospects.
He argued in a recent Twitter thread that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.As Filb’s chart below depicts, the last time the 50-week crossed above the 100-week, Bitcoin rallied for months straight, surging to fresh highs month in, month out.Historical precedence would suggest the same is about to happen… again.
Sure the 50/200 DMA $btc death cross is getting everyone super bearish but End of Nov/ Start of Dec the 50/100 WMA is due to cross which is far more significant.
pic.twitter.com/ifGWguAtd5 Related Reading: As Bitcoin Price Drops To $9K, Here Are the Targets Traders Are Watching Are There Long-Term Bear Signals?
While there are numerous tidbits of evidence backing the sentiment that Bitcoin is likely to enter its next long-term round of exponential growth in the coming months, it is fair to ask if there are some bearish signals.
Interestingly, there are a few.One of the most notable bearish signals is an analysis by Velvet, who found that Bitcoin’s next all-time high may be years away.Per previous reports from NewsBTC , the analyst believes that Bitcoin’s establishment of new all-time highs can be predicted using Fibonacci numbers.According to the trader, it took Bitcoin 625 days to break above the all-time high of the 2011 bull market peak.Then it took another 1250 days to break above the all-time high set during the 2013 bull run.
Fibonacci sequence would then suggest that the current all-time high of $20,000 will not be broken until 2500 days have passed, or not until October 24, 2024.Related Reading: Why Bitcoin? Bank of America Services Down Across U.S.Featured Image from Shutterstock.
