Crypto Price Action Sports Uncanny Resemblance to Bitcoin Bear Market Bottom

Tony "The Bull" Severino

5 years ago

3 mins read

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After an early 2019 parabolic rally, Bitcoin has spent the last few months locked within a vicious downtrend that’s seen nearly 50% of the crypto asset’s value eliminated.

But after months of sustained selling, crypto analysts have begun to watch for signs a bottom may be forming, and according to one prominent trader, Bitcoin price charts are showing a pattern that holds an “uncanny resemblance” to Bitcoin’s bear market bottoming pattern from the start of the year.

Bitcoin Price Action Shows Resemblance to Bear Market Bottom

Nearly one year ago in December 2018, Bitcoin price reached its bear market low of $3,150 just a month after critical support at $6,000 gave way, and a violent drop took the crypto asset into the deepest depths of crypto winter.

The leading crypto asset by market cap spent the first three months of the year building a base pattern, giving traders and investors confidence that a bottom could be forming, and the asset would soon return to a bull market.

Eventually, Bitcoin exploded out of that bottom, rallying over 350% until it reached resistance at $14,000, where it was rejected, causing a reversal that has resulted in months of a downtrend. However, the downtrend may soon be coming to an end, as Bitcoin is once again showing signs that a strong base is building, and a reversal could soon be ahead.

In fact, the current price action across crypto markets very closely resembles the price action at Bitcoin’s bear market bottom. According to one crypto trader, the resemblance is “uncanny” and makes “sense” that the first major correction after Bitcoin’s first major move up would result in an accumulation period that resembled the initial phase.

https://twitter.com/canteringclark/status/1203866598370660352?s=21

Each phase’s purpose would be to allow high-wealth, “smart money” investors to load up on the asset at the lowest prices possible before a markup phase begins and the asset’s price is propelled higher and higher – much like what happened from April through early July.

Once Bitcoin began its rally earlier this year, much of the crypto market had been confident that the first-ever cryptocurrency was returning to bull mode, and about to embark on the greatest bull market the world has ever seen. But a deep correction quickly turned the exuberance to fear.

In the days ahead, if Bitcoin can continue to form a base and bottom at current prices, moving into a bull market may be possible. However, if Bitcoin price continues to crash, the asset’s first true bear market may be ahead – one that could put the future of the emerging asset class in jeopardy of being dead before it has ever truly arrived.

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.