After 15 months of a bearish trend in the cryptocurrency market, a technical analysis of the market indicates the Bullish trend is here. The technical analysis and the recent surge creates an aura of greater positivity in the cryptocurrency market.
Sign Of A Bullish Trend
After 442 days, about 15 months in a bearish crypto market, a positive candle was closed on the chart, technically analysing, using the method known as Ichimoku Cloud. This is a collection of indicators that shows support and resistance levels.
A crypto-analyst, Josh Olszewicz noted on Twitter that “1D $BTC, 442 days, it’s been 442 days since a daily candle closes above the cloud.“
Also, the technical analysis signal also coincides with the recent surge in the crypto market. The recent surge has seen the value of Bitcoin rise above a key resistant level of $4,200 to reach the $5,000 mark. This marks a break out from a 15 months bearish trend.
The recent surge can be said to have been triggered by, a short squeeze of $500 million worth of contracts on exchanges like BitMEX, buyers absorption of massive sell order in the worth of hundreds of millions of dollars, and the lack of resistance above a key resistant level at $4,200.
The Formation Of Third Cycle Imminent
Usually, a short term price movement of Bitcoin is followed by a slight retracement, especially if it is higher than 10%. This suggests that a retracement can take place before the next bull run.
Meanwhile, market analyst David Puell, suggests that in the near term, the velocity of the crypto market may lead to the formation of the third cycle. The third cycle is expected to cause another crypto bubble has experienced in 2011 and 2017. During the previous bubble in 2011 and 2017, when Bitcoin recorded a return of over ten folds.
Bitcoin Halving and Change In Sentiment
Further, the sentiment on the crypto market has changed as the community look forward to yet another Bitcoin [BTC] cryptocurrency halving. Historically, Bitcoin is known to rebound a year before its block reward halving. This process reduces the rate at which new coins are mined as the network approaches its fixed supply of 21 million BTC.
The next halving is to take place in May 2020. This indicates that Bitcoin could see a Bullish move starting from next month. Bitcoin seems to have approached its glory days once more and next major resistance – as analysed by an analyst, Brian Kelly – would be at the $6,000 region.