Top Signs Bitcoin Is Quietly Entering a New Bull Market Phase
(BTC) price has been sideways for several weeks with now over a month since the halving. This is very much reminiscent of early 2017 when Bitcoin hit $1,180 for the second time, triggering a catastrophic sell-off causing the top-ranked cryptocurrency to fall by nearly 40% in a single day.
It was over, Bitcoin was declared dead, and what happened after is the first sign that we were in for a bull market.
Having studied the charts for repeating patterns, you can see that the pattern that played out after the 40% dump from $1,180 in January 2017 is almost identical to that of the 57% dump that occurred on March 12, otherwise known as Black Thursday.
On both occasions, the price recovered to the pre-dump levels and shortly after an M pattern, typically signaling a bearish double-top.
However, what is different about the M pattern in 2017 is that the end of the M was actually the beginning of a W. Not quite a double bottom, but what came next was a 2000% rise in the value of Bitcoin.
Right now in 2020, we are seeing the same pattern play out. The only question is where is the bottom of the W? Is the bottom in? Or are we expecting another small pullback?
June 11 saw a breakdown from the ascending channel that was forming since the black Thursday dump. It was inevitable that a pullback was due after such a huge recovery.
10 days on and we’re seeing a new descending channel opening up that has perfect Fibonacci levels lining up.
The upper part of the channel, which shows resistance at around $9,600, sits perfectly on the 618, and the midpoint of the channel shows a level of support is on the 236 fib at $9,168.
However, while this isn’t something that may seem like the sign of a bull market on face value as far as the charts are concerned, what is interesting is the relevance of the 50% fib which sits around $9,470, and the support of the channel at around $8,635, as these levels become something of a highlight when you look at the orderbook heat map.