Make It Or Break It Time For Bitcoin, Rally In Jeopardy If Support Is Lost

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin markets are on fire once again, following a massive price spike last weekend on the heels of news Chinese President Xi Jinping spoke out in support of the blockchain technology Bitcoin is built on.

The rally, which set a record for the third-largest 24-hour gain in the asset’s 11-year history, is now in jeopardy of being almost completely erased if the crypto asset cannot maintain support at current levels, according to one crypto investor and trader.

Bitcoin Price Resting on “Must Bounce” Level Or At Risk of Further Fall

All throughout the summer months, Bitcoin price bounced back and forth between peaks and troughs, forming a descending triangle that ultimately broke down. The triangle pattern support at $9,200 eventually gave way, and Bitcoin price dropped to the low $7,000 range.

But last weekend’s powerful rally following news that China would support the development of blockchain technology within the country’s borders took Bitcoin price skyrocketing from lows around $7,400 to as high at $10,500 before finding support in the mid-$9,000 range – where Bitcoin previously found support within the triangle.

The leading crypto asset by market cap is currently trading at just above $9,200 after repeated attempts to push the price of the asset lower, however, unless Bitcoin can sustain a bounce higher and confirm the current support as such, crypto analyst and venture capitalist Zhi Ko says that Bitcoin may be in “trouble.”

https://twitter.com/cryptonekoz/status/1189594980446175234?s=21

The analyst expects Bitcoin to make one final attempt at $9,600, fail, and ultimately drop back down to the mid-range of the recent bear flag, which resides in the low $8,000 range.

A fall from current highs back down to lows after such a historic and powerful rally, could deal a fatal blow to crypto bulls whose confidence was only just revived, only to be crushed once again by bears.

Was Last Weekend’s Rally a Bearish Retest Or The Start Of A Rebound?

Such a move would confirm that the recent spike was merely a powerful, but bearish retest of former resistance turned support, which would now be confirmed as such and caused Bitcoin to descend further into a downtrend.

Clearly, the crypto asset is indeed at a make or break it moment, as the trader suggests, and the days ahead are especially important in determining the trend for the remainder of the calendar year.

On the bright side, assets like stocks and cryptocurrencies typically perform better from November through May than they do in the other half of the year, and with Bitcoin’s halving coming this May 2020, this next six month time period could be among the first-ever cryptocurrency’s most profitable yet.

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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.