Bitcoin Collapse Retests Key Weekly Level Never Lost During Last Bull Run

Tony "The Bull" Severino

Last Updated: September 5, 2020 5:00 pm

3 mins read

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Bitcoin price this week shocked the crypto world with an over $2,000 collapse from over $12,000 to under $10,000 in just two days flat. Although there’s certainly blood in the streets, and a sharp turn in sentiment toward fear and panic, the cryptocurrency is currently holding an important level.

The fall retraced to a key level that during the last major bull market was never lost. The alternative – potentially losing the line – last led to the Black Thursday plummet. The cryptocurrency is clearly at a crossroads and whatever happens next is especially critical.

Bollinger Bands Weekly Mid-BB Held Strong The Entire Last Bull Market

Crypto analysts rely on several tools as part of technical analysis to predict future price movements, find areas that may act as support or resistance and more.

Some of the best analysts the finance industry has to offer have even created indicators to assist themselves and others with this practice.

The Bollinger Bands are just one type of technical analysis indicator commonly used throughout crypto and other markets. It helps plot various levels of potential support and resistance and is among the best tools for measuring volatility.

And according to the last Bitcoin bull market, the middle-BB – a 20-session simple moving average – supported the cryptocurrency’s powerful parabolic ascent the entire way up.

BTCUSD Weekly Bollinger Bands 2016 & 2017 Bull Run Comparison | Source: TradingView

Is Bitcoin Holding Strong Here After Such a Collapse An Early Sign Of A Bull Run?

Now, that same key level is holding once again for Bitcoin. Zooming in on BTCUSD weekly charts shows how the middle-BB kept Bitcoin in a bear market all throughout 2018.

Rising through the mid-BB can be a powerful buy or sell signal. The April 2019 rally is a perfect example of this. The rally grew so strong, and was supported by such a surge in buying volume lit ed to Bitcoin “riding the bands” all the way to $14,000.

BTCUSD Weekly Bollinger Bands 2020 Mid-BB Holding Support | Source: TradingView

After that top, Bitcoin has since struggled to hold above the mid-BB, even after repeated trips to the lower Bollinger Band. Black Thursday marked the last touch of the bottom band, taking the crypto asset all the way back to the top band at over $12,000.

From there, the cryptocurrency is now once again testing the weekly mid-BB and thus far holding. The last time, it didn’t, and Bitcoin fell over 50% more. As the April 2019 rally shows a strong close below the mid-BB can lead to an aggressive trend on the other side, so Bitcoin is not out of danger.

Bulls do not want to see any close below the critical line. If it can hold, as the last bull market has shown, it was off to the races and new all-time highs around every turn.

Is that’s what is about to happen if Bitcoin can hold weekly support after such a massive crash?

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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