Bitcoin Bear Flag Could Cause Crypto Asset To Retest February 2018 Lows

Tony "The Bull" Severino

5 years ago

2 mins read

bitcoin crypto winter bear market bottom

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As the 2019 parabolic rally came to a close, Bitcoin began to trade within a large, multi-month descending triangle pattern that only just recently broke down after extensive consolidation.

According to a popular crypto analyst, the breakdown resulted in Bitcoin forming a bear flag, and it likely signals further continuation to the downside, potentially as low as the price Bitcoin reached back in February 2018 when the crypto bear market first got underway.

Further Bitcoin Breakdown Puts Asset At Risk for Retest of Initial Bear Market Lows

After Bitcoin peaked at its all-time high of $20,000 back in December of 2017, its value then fell nearly 70% to form a V-shaped low around $5,800 in February 2018 – just two months after the top was in, underscoring the volatility the cryptocurrency is known for.

That same low from back in 2018, could be the next stop for Bitcoin price if a bear flag the asset is currently trading in confirms and the crypto asset continues along with its newly formed downtrend.

I literally can't find any bullish arguments for $BTC here.

Breaks down from a 4 month structure into a clear Bear flag.

I think it's inevitable we see fresh lows. Feb 2018 lows are begging to be tapped imo. pic.twitter.com/fKXnChugtJ

— CRG (@MacroCRG) October 15, 2019

According to a prominent crypto analyst, there aren’t any bullish arguments for Bitcoin at all to be found in the asset’s price charts, following a breakdown from a “4 month structure into a clear bear flag.”

The analyst believes that given the price action and current chart formations, Bitcoin will inevitably set fresh local lows, and could revisit the aforementioned February 2018 low.

Is the Crypto Bear Market Bottom Actually In? Or Was the 2019 Rally Just a Dead Cat Bounce?

If that low is reached, a bottom of the current correction may finally be put in, and Bitcoin could return on its parabolic rally and bull run, leading up to the halving in May 2020. Many analysts believe that the leading crypto asset by market cap could reach as much as $55,000 per BTC before its upcoming halving, according to the highly-cited Bitcoin stock-to-flow model.

However, that number would be nearly a 1000% gain from the lows currently being targeted. Such gains would be highly unlikely in most asset classes, however, Bitcoin can rise and fall substantially in a very short amount of time, and has already risen from $3,100 to $14,000 this year, showing that anything is possible for the first-ever crypto asset.

But if there truly aren’t any bullish arguments to be made for Bitcoin, the crypto asset could be at risk of setting a new low, deeper than the current bear market bottom it set back in December 2018 at $3,100. This would mean that the bear market never actually ended, and the entire rally from $3,100 to $14,000 was nothing more than an extremely lucrative dead cat bounce.

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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.