Bears Beware: Bitcoin Price Might Range For Another Month

Tony "The Bull" Severino

6 years ago

3 mins read

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Bears are rejoicing now that Bitcoin price is back below $10,000 and at risk of falling further to retest former lows as support.

But while recent Bitcoin price action may suggest that bears have resumed control over the short-term trend, bulls haven’t given up the fight. The game of tug-of-war may continue to go on for another month before exhausting this trading range and moving along to another.

Max Pain Scenario: Another Month of Sideways Bitcoin Price Action

Bitcoin price has been trading between decreasingly lower highs and support at $9,300 over the last two or so months, forming what appears to be a descending triangle chart pattern. These chart patterns are typically bearish and suggest a break to the downside is imminent.

Bears know this, are already euphoric now that Bitcoin price is below $10,000, and are expecting a far deeper correction from here where they can buy Bitcoin for cheaper prices.

But bears need to beware that bulls could once again support Bitcoin price at current levels and push price back up to the top of the triangle. A fast, powerful move back toward $10,000 could surprise bears and squeeze late shorters, propelling Bitcoin price back upward towards $11,000 – which coincides with the triangle’s descending resistance.

One crypto analyst believes that not only is this scenario likely, but it could also continue to repeat throughout the rest of the month, ranging inside the descending triangle.

Can we break down? Yes.

Good to be aware that there is still al ot of room not to tho.

Maybe it will range for another month pic.twitter.com/SIPigc3E4n

— Lord Catoshi (@LordCatoshi) August 30, 2019

Crypto traders like to talk about which scenario – up or down – would be the “max pain scenario,” however, what might be the most painful for investors and traders, isn’t a break to the downside or upside, it is more choppy, sideways trading.

When finanical assets like Bitcoin trade sideways for an extended period of time, market participants grow tired of trading the chop. The tightening range also becomes less and less profitable, so trading volume diminishes. Traders, in this case, will either exit all positions, or simple set stops and let the trend choose the eventual direction.

This often results in an extremely powerful move, once the final direction is chosen, as trader’s stops are hit and sidelined traders begin to take positions quickly in reaction to the trend change or continuation.

Previously, another analyst predicted sideways trading for the remainder of the year, not just another month. Should this occur, interest in BTC will wane significantly until the mid-term trend direction is chosen. A break to the upside at that point would almost certainly cause serious FOMO – enough for Bitcoin price to retest its previous all-time high at $20,000.

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.