Crypto Analyst Expects Strong Bitcoin Bounce, Monthly MACD Signals Bottom

Tony "The Bull" Severino

6 years ago

3 mins read

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Members of the crypto community, analysts, investors, and traders alike are all consumed with analyzing charts, both current and historic, hoping to find early signals that the bottom of Bitcoin’s now longest ever bear market is in.

One particular prominent chartist and trader, believes that Bitcoin is due for a powerful bounce soon, and further suggest that the monthly MACD has started to signal that the bottom of the 2018-2019 bear market may be in, if patterns witnessed in previous bull-bear cycles are repeated.

Bitcoin Ready to Bounce? Traders Watch the 200-Week Moving Average

Bitcoin has been stuck in a phase of stability typically not seen in the extremely volatile asset. Tightening trading ranges and dwindling volume often suggest that price consolidation is occurring, and traders are sitting by the wayside in anticipation of the next major move.

The last time Bitcoin experienced this stable of a trading range and price consolidation, price eventually fell through important and repeatedly tested support at $6K, and declined nearly another 50% toward a low of roughly $3,150. At the low, Bitcoin bounced off the 200-week moving average (200MA), but general weakness by bulls have caused the price of the number 1 crypto by market cap to drift back toward the critical support indicator.

Ready for the b b b b bounce? pic.twitter.com/VorFkLpA3m

— dave the wave🌊🌓 (@davthewave) February 6, 2019

While many analysts are claiming the 200MA won’t hold a second test, bearish volume is diminishing and Bitcoin is contained in a bullish price pattern: the falling wedge.

Prominent crypto trader and chartist Dave the Wave is expecting a major bounce the closer Bitcoin gets to the 200MA, and points to the 2014-2015 bear market’s multiple bounces off the widely used trading indicator.

Looking at historical charts, Bitcoin bounced numerous times it touched the important moving average. If history repeats, a strong bounce should occur within the coming days.

Keep it rational contra the sentiment. pic.twitter.com/aO3OS1tCS4

— dave the wave🌊🌓 (@davthewave) February 6, 2019

Monthly MACD Could Indicate Bitcoin Bottom Is In

By looking closely at the past, oftentimes patterns can be discovered that can help traders to better anticipate upcoming movements. The 200MA is an indicator traders are currently watching closely due the current price’s proximity to it. However, there are dozens of other indicators that traders can use to help determine what the market might do next.

Where have all the contrarians gone?

Here's the monthly MACD, probably the scariest indicator for the bulls… and yet it's signaling the bottom insofar as the two corrections are to be compared.

. pic.twitter.com/1NFDirwBKU

— dave the wave🌊🌓 (@davthewave) February 6, 2019

And while sentiment is at extreme lows and many are calling for Bitcoin’s price to reach the $2K range, the monthly MACD has entered a zone that has previously indicated the bottom of the last bear market. It doesn’t quite suggest a new bull run is right around the corner, as the bottoming process can take weeks to months. However, if history were to repeat itself, Bitcoin will have already begun that process and bulls can breath a sigh of relief.

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.