Has Bitcoin Confirmed A Bullish Retest Of “Meme” Downtrend Line?

Tony "The Bull" Severino

Last Updated: June 11, 2024 7:05 am

3 mins read

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Bitcoin price may be at among its most critical moments in its short just over a decade history. The cryptocurrency has over the last several days retested the all-important “meme” downtrend line extending from all-time high as resistance turned support.

After successfully holding, the bullish retest could be confirmed, and the last dip before Bitcoin’s next bull run could already be behind us.

Has Bitcoin Confirmed A Bullish Retest Of The “Meme” Downtrend Line?

Bitcoin price has spent three years trapped within a downtrend. This downtrend was capped off by a trendline that nearly everyone who has ever laid eyes on a BItcoin chart has likely also seen.

Few charts were shared over the last year without that key line connecting the all-time high and Bitcoin’s 2019 trip to $14,000. Because the cryptocurrency was so well contained by this well-known line, the trendline has become a “meme” throughout the crypto community.

According to Wikipedia, a “meme is an idea, behavior, or style that becomes a fad and spreads by means of imitation from person to person within a culture and often carries symbolic meaning.”

Although everyone is using this trend line, it doesn’t make it any less valid. In fact, it may be the most critical trend line the crypto asset has ever tested as resistance turned support.

That bullish retest may be over and concluded, according to a zoomed in look at the “meme” trend line. Bitcoin fell below and closed a handful of daily candles below the trend line, but has since made its way back above it as of today. If the daily can close above and hold, it could be the last time the cryptocurrency ever trades below its boundaries.

BTCUSD Daily Meme Downtrend Line Retest Confirmed? | Source: TradingView

Could Another Downtrend Line Develop That Keeps The Cryptocurrency Trend Bearish A Bit Longer?

It is worth pointing out that nearly all other “meme” trend lines have turned out to be just another line meant to be broken but failed to lead to the bull market crypto investors are salivating over.

Looking back throughout the bear market, there have been several trend lines broken (red and blue) that resulted in more downside following, or another more dominant trend line developing.

BTCUSD Daily Downtrend Lines Galore! | Source: TradingView

It also adds to the possibility that this latest meme trend line retest, isn’t all that special. It also could mean another game of the connect the dots will lead to yet another new, dominant trend line developing (purple).

Trend lines, like rules, are meant to be broken. They also can be used against traders especially when so many eyes are on the same crucial level. Chances of an increase in volatility or violent shakeouts are normal during important retests.

So while this retest already looks to be confirmed and bulls in charge, a trap is possible where bears push price action back within the trendline. If it holds, however, nearly everyone who has ever stared at a Bitcoin price chart will know this key line is breached, and it could trigger a massive wave of FOMO.

Featured image from DepositPhotos, Charts from TradingView

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.

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