Bitcoin Price Crash May Be Final Test Before Market Goes Full Bull

Tony "The Bull" Severino

5 years ago

3 mins read

bitcoin price chart crypto puell multiple

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

After trading in a triangle formation for the second half of 2019 thus far, Bitcoin price finally broke down in a violent plunge that eliminated as much as 15% from Bitcoin’s value.

While the drop has turned many bulls to bears, and sent a ripple of fear and panic throughout the market, according to one prominent crypto analyst, this may be the final test of support before Bitcoin price goes into full bull mode.

Bitcoin Price Two-Year Moving Average Will Confirm Bull or Bear

Yesterday’s drop in Bitcoin markets took the price of the crypto asset from the high $9,000 range to as low as $7,800 on some crypto exchanges. The drop caused Bitcoin price to test its 200-day moving average, where it is currently resting at support.

The support line is an important one and will answer the question if Bitcoin is in a bull market or if there is a chance the bear market returns with a vengeance. Throughout the entire 2016 to 2017 bull run, Bitcoin tested the moving average a number of times but never broke below.

3/ *IF* we got down to that level, it would also align with a retest of the two year moving average, which I have tweeted about previously. This is an old chart that shows it retesting in previous cycles. pic.twitter.com/RYryOGtOYd

— Philip Swift (@PositiveCrypto) September 25, 2019

If the 200DMA gives way, crypto analyst Philip Swift says that there is yet another important moving average that could be tested, and could serve as the “final test before we go full bull.” The analyst cites the two-year moving average as critical support that was only retested just once following a bottom being set, unlike the 200DMA which was repeatedly tested as support.

Swift says that the moving average aligns with the 0.618 Fibonacci retracement level – a system commonly used to predict where crashed might reverse. The analyst expects the leading crypto asset by market cap to bounce at the two-year moving average in what he suspects will be the final test before the bull run truly begins.

He also concludes that Bitcoin is “clearly” in a “bull market” already, and shared a Bitcoin price chart with the Puell Multiple added to back up his theory of where it may be in its current bear-bull cycle.

5/ …because clearly we are in a bull market. Multiple charts including the Puell Multiple show approximately where we are in the cycle (A,B,C on the chart).

Feels like this is the final test before we go full bull, so hold tight everyone! 👊 pic.twitter.com/5oHaLsibGU

— Philip Swift (@PositiveCrypto) September 25, 2019

According to the Puell Multiple, Bitcoin is likely at the first real pullback and reaccummulation phase of its next bull run. This phase is when even the most stoic of crypto holders hands are tested and potentially shaken out of their long-term positions, as fears that the bottom actually hasn’t been set permeate the market.

If this is indeed the final test before Bitcoin starts its full bull run, buying the dip would be a wise and profitable decision. But if Bitcoin price continues below its critical moving averages, the chances that the bottom isn’t actually in begin to increase.

Featured image from Shutterstock

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.