Bitcoin Price: Current Level Acted As Launchpad For Past Historic Rally

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin price has nearly doubled in price after the historic collapse that occurred in mid-March took the asset back to under $4,000 at the low.

The first-ever cryptocurrency has reclaimed a critically important level that in the past has acted as a launchpad for a record-breaking, over 40% rally in under 48 hours. Is Bitcoin price refueling its jets for another explosive rally, or will the cryptocurrency reject from the powerful support turned resistance?

Bitcoin Price Reaches Key Level Responsible For Previous Historic Rally

At the start of 2020, Bitcoin price rallied from under $7,000 to well over $10,000 before the coronavirus outbreak sent markets spiraling out of control.

Once fear took hold of markets, Bitcoin and the rest of the crypto market suffered catastrophic record-breaking losses, dropping over 50% in a single day in many cases.

Bitcoin price plummeted to a low of $3,800 thanks to a combination of cascading liquidations and panic selling driving the price of the leading cryptocurrency by market cap to prices not traded at since over a year prior.

But since the dust settled on the devastating drop, Bitcoin price has been on a tear, rallying through key resistance levels and up through $6,000 and now $7,000.

The cryptocurrency yesterday reached a high of $7,430 – a level that acted as a launchpad for a record-breaking rally in the past.

Bitcoin has reached $7430

This is the same price point from which Bitcoin rallied +40% in late October 2019 when the Chinese President publicly endorsed blockchain$BTC #Crypto #Bitcoin

— Rekt Capital (@rektcapital) April 7, 2020

Will The Record-Breaking China Pump Repeat? Or Has Support Turned Resistance?

Bitcoin price has revisited $7,450, the low set just ahead of the record-breaking “China pump.”

In October 2019, news broke that Chinese President Xi Jinping urged his citizens to stay on the forefront of blockchain technology that powers cryptocurrencies like Bitcoin, Ethereum, and others.

Many took this as a nod of support for Bitcoin and other cryptocurrencies, while others insist that the surge was due to whales seizing an opportunity to squeeze out shorts via a news-driven rally – a move that clearly worked.

Whatever the case, Bitcoin price rallied from $7,430 to $10,500 in under 48 hours, setting a record for the third-largest single-day gain in the asset’s young history.

During that time, however, the level was acting as support, and not resistance, making a repeat of that powerful move less likely. The level could also act as similarly powerful resistance, causing a devastating move to the downside if Bitcoin price is rejected from the clearly critical level.

The first-ever cryptocurrency has a lot to prove in facing its first recession since its inception, and how it survives here could help the asset reach its full potential as a viable replacement for fiat currencies and the dollar.

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.