Crypto Analyst: Bitcoin Bull Rally is Over if Trendline Breaks

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin has been on a bull run since the start of 2019, after bottoming in December 2019. Momentum picked up with a $1,000 candle in April and the crypto asset was off to the races ever since.

But now the race appears to be coming to an end, and Bitcoin could cross the finish line soon with a break of a multi-month trendline that has been supporting Bitcoin price thus far and preventing the crypto asset from falling below $10,000.

Bulls In Trouble if Multi-Month Bitcoin Trendline Breaks

Following April’s $1,000 candle in a matter of an hour that set off a domino effect of crushing altcoins and causing Bitcoin to go parabolic, the crypto asset experienced only a few small corrections before breaking back above the important FOMO trigger level of $10,000 where it’s been for the last few months.

One of those minor corrections involved a test of support at $7,500. From there, a trendline was born that yes yet to break, despite three or four tests of it as support. Bitcoin price is currently just above that trendline, and a clean break below it could spell disaster.

In fact, one crypto analyst says that a break of this important trendline “means it’s all over” for bulls. A strong break below could cause Bitcoin to retest the horizontal support at $7,500 where the trendline was born from.

https://twitter.com/imperatortrades/status/1164614694923059200?s=12

The bottom trendline is also the bottom of a symmetrical triangle that’s formed over the last few months after Bitcoin price topped out at $13,800. Since then it has bounced back and forth between peak and trough, forming the geometrical chart pattern.

Symmetrical triangles are typically continuation patterns but can break up or down. Because Bitcoin price is currently at the bottom of the formation and bottom of the important multi-month trendline that has supported price from falling further thus far, a breakdown is likely unless bulls can make a strong push toward the top of the triangle, and break above around $11,750 and close a daily candle.

Beyond the break of the trendline, a bearish breakdown from here could cause widespread panic across the already shaken crypto market, which is sitting at its lowest level on the fear and greed index in the history of the metric.

The market is already fearful after altcoins have fallen so significantly relative to their BTC ratios. A drop in Bitcoin could either cause altcoins to rally, or further drag down their USD values if they fall further. All this depends on what Bitcoin does from here, and the entire market will be watching and waiting to see what happens next.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.