• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
bitcoin price

Last 2 Times This Signal Was Seen, Bitcoin Dove 50%. It’s About to Happen Again

Nick Chong by Nick Chong
3 years ago
in Bitcoin
Reading Time: 2 mins read

Bitcoin’s recent consolidation has left analysts and investors alike largely puzzled as to what comes next.

Nothing is a better sign of this than the funding rates of BTC futures markets, which are converging towards 0.00%. This shows that both the long and short side of the market is not overvalued.

An analyst has suggested that a retracement to $5,000 is possible as a key macro momentum indicator is poised to flip bearish for the first time since the second half of 2018.

Related Reading: Crypto Tidbits: BTC Fails at $10k, Ethereum Coins Explode, Coinbase Looks to Add 18 Altcoins

Bitcoin Trend Indicator Is About to Trend Bearish

In the middle of 2019, Bitcoin broke past resistance after resistance in rapid succession. The price action was so strong that many expected for BTC to set a new all-time high that year, with some tossing out high price predictions of $50,000 — or more.

Yet there were some analysts forecasting a retracement. One said that Bitcoin would fall to $6,400 — a drop of approximately 50% from the price at the time he made that call.

That same analyst recently suggested that there’s potential for Bitcoin to retrace 50% in the coming months, which would imply a low of ~$5,000 prior to a bounce.

The chart he shared below illustrates this sentiment well. It shows Bitcoin’s macro price action alongside a channel/momentum indicator that has attempted to determine in what macro direction BTC is trending.

Each time the channel flipped red over the past five years, the price of Bitcoin retraced 50% — hence the forecast of a potential retracement to the $5,000s.

Image

Macro s price chart from trader "Dave the Wave" (@Davonwave on Twitter). Chart from TradingView.com. 

Importantly, the indicator that the trader shared is lagging. That’s to say, Bitcoin may actually trend higher while the channel is red, That doesn’t take away from the importance of the indicator, though, especially considering its historical precedent.

This Time Is Different

The indicator depicted by the analyst is seemingly poised to roll over. Yet there is a confluence of positive technical and fundamental factors that signal Bitcoin will move higher out of the ongoing consolidation.

Per previous reports from NewsBTC, BTChas traded in nine five-week, 20% consolidations over the past two years. A data analyst found that 77% of those patterns have broken higher, suggesting the ongoing consolidation has a high historical chance of breaking higher.

In terms of fundamentals, JPMorgan is currently expecting a 47% rally in the value of equities, despite the S&P 500 already rallying 40% from the March lows.

Bitcoin will benefit if equities rally further due to the relatively tight correlation between cryptocurrencies and traditional financial markets that has formed over recent months.

Related Reading: BTC Hash Rate Recovers to Pre-Halving Levels, But a Chinese Mine Just Burned Down
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Technical charts from Tradingview.com
Last 2 Times This Signal Was Seen, Bitcoin Dove 50%. It's About to Happen Again
Tags: bitcoin pricebtcusdBTCUSDTDave the Wavetechnical analysisxbtusd
Tweet123Share196ShareSend
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin (BTC)

Traders Act Fast As Binance Australia Unveils Bitcoin Discount For Limited Period

5 days ago
Bitcoin (BTC)

No All-Time High For Bitcoin In 2023, Former BitMEX Head Arthur Hayes Predicts

6 days ago
Bitcoin

Bitcoin Shows Recovery: Did This Historical Line Act As Support Again?

6 days ago
Bitcoin Core

Bitcoin Core 25.0 Hits The Market: A Sneak Peek Into The Future

6 days ago
Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

1 week ago
Bitcoin

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

1 week ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    4 days ago
  • Willing to buy new crypto: Here are the best 10...

    4 days ago
  • Best Crypto Meme Coin Presales in 2023

    4 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • According to experienced traders, Aave (AAVE) and InQubeta...

    37 mins ago
  • Avalanche price at important support level, Quant price to...

    2 hours ago
  • Looking for the next Crypto That Could 100x? Check...

    2 hours ago
  • Tradecurve (TCRV) Presale Bonus Attracts More Investors As...

    3 hours ago
  • XRP and Big Eyes Coin (BIG): Riding the FOMO Wave in the...

    3 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.