The Fate of Bitcoin Rests On This Seven-Year Secular Bull Market Support

Tony "The Bull" Severino

5 years ago

3 mins read

bitcoin crypto monthly support bull market

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Bitcoin just experienced its worst single-day drop in 2020 so far but is just the latest fall since the asset’s failure to find sustained buying interest above $10,000.

This latest collapse has shocked crypto investors and pushed Bitcoin down to a support line that’s held up now for seven years running. Rebounding from here would suggest current prices are the greatest financial opportunity yet, but breaking below the line could be a signal to dump all crypto holdings.

This Support Line Dates Back Seven Years of Bull Market

It’s been said dozens of times before this, but this moment is critical for Bitcoin and could very well be its make it or break it moment that decides its fate.

And what the first-ever cryptocurrency could be breaking, is a support line dating back to 2013 that’s helped carry Bitcoin from just $32 per BTC to just under $20,000 at its peak.

On monthly Bitcoin price charts, a trend line can be seen supporting the cryptocurrency, dating back to March of 2013.

The support line didn’t get another touch, until the second bottom during the 2015 bear market double bottom.

There was yet another touch in 2016 that acted as a launchpad for the 2017 crypto bubble that made Bitcoin a household name.

It wasn’t until February 2019 that Bitcoin touched this line yet again, causing the asset to take off towards $14,000.

There, it failed to breakthrough monthly resistance and fell back down toward the line for multiple touches. This line also supported the “bottom” at $6,400 that sent Bitcoin soaring back above $10,000.

But Bitcoin is back there once again, and this time, it is facing a black swan event with the spread of the coronavirus pandemic and a coinciding stock market collapse.

What Happens to Bitcoin If This Line Fails or Holds?

The first-ever cryptocurrency was built during the last recession but is about to face the first major recession since its creation. A recession and panic-induced selloff over fears of a pandemic could be what causes this line to finally give way and breakdown.

A breakdown would end over seven-years of support and a secular bull market that’s been going on since the cryptocurrency was first created.

If somehow Bitcoin can withstand the forces of fear and uncertainty and bounce at this level, those who are buying the asset are likely doing so at the greatest possible financial opportunity ever.

Currently, Bitcoin has never closed a monthly candle below this line. On weekly timeframes, Bitcoin appears to be losing this critical line currently. However, all hope is not lost. During late 2015, Bitcoin closed a handful of weekly candles below the line, before breaking back above it and going on the greatest bull run the world has ever seen.

Will history repeat itself, or is it time for a new line to be drawn?

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.