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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
— filbfilb (@filbfilb) October 30, 2019
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
