If $13000 to $9000 is not a bear market, will the history of the bull market re-enactment repeat itself?

If Bitcoin rises from $3,150 to nearly $14,000, it is an "expansion phase," and what is happening now is actually entering the "re-accumulation phase."

Just after the two hearings of Libra in the US Congress, Bitcoin finally showed some vitality in the short-term trend. In just over eight hours before the writing of this article, bitcoin prices rebounded from around $9,150 to around $9,800, an increase of 7%. More importantly, the Relative Strength Index (RSI) indicator is also trying to break the downside, meaning that the market is moving further, suggesting that the “Cubs” trend is temporarily reversed.

Two reasons for the end of the "Little Bear"?

It is unclear whether Bitcoin has reached the bottom of its recent downturn. If we look back at the history of 2017, we will find that the “Cubs” time before Big Bull may last for more than six weeks. But now there are analysts who say the current downturn should have ended, such as CryptoHamster, he made two reasons:

First, the one-day relative strength index and the Stochastic iteration index are at their lowest levels in two months, which means that the market has entered the “oversold” range. (Stars o-daily Note: Oversold is usually used in stories, which refers to a significant decline in the price of securities, which may rise in the near future.) In addition, the moving average convergence divergence indicator has also touched the "0" level, generally speaking Also a positive signal;

Second, the Elder's Forse index has reached its lowest point since November 2018, with historical volatility almost reaching 100%, which means that volatility has returned to normal. (The planet is o-daily Note: The Elder's Forse index is an indicator of the strength of the trend)

Is Bitcoin re-accumulating?

It is undeniable that after a period of intense heat and hit a high of $13,000, Bitcoin has recently experienced some downsides, and the bulls have not been able to accelerate as scheduled. In the past one week, bitcoin prices have fallen by about 25%, while the altcoins such as Ethereum and Wright have fallen by more than 30% to 40%. At the same time, bitcoin trading volume has begun to decline, market sentiment has been declining, and Google Trends' interest in "bitcoin" and related keywords is also on a downward trend.

Although this dramatic decline is seen by many people in the cryptocurrency industry as “the end of the bull market”, in fact, from the historical trend analysis, Bitcoin needs this callback – more importantly, this callback may be healthy. of.

Why do you say that?

If Bitcoin rises from $3,150 to nearly $14,000, it is an "expansion phase," and what is happening now is actually entering the "re-accumulation phase."

This is very important, because from the history of Bitcoin (such as 2017), each block incentive is halved before a new price low and a new price high – if not happening It will be surprising that whether it is going up or down, it means that Bitcoin will not continue to rebound to an eye-catching high, and certainly will not completely collapse. Therefore, in a sense, this kind of callback is necessary and expected.

Then the question is coming. Where will Bitcoin’s “re-accumulation stage” bottom out? Here, I have to introduce CryptoKea, a low-key "big cow" analyst. The analyst is little known, but it accurately predicted earlier this month that Bitcoin will fall at least to $9,700. Now, $8,000 seems to be the consensus of analysts, at least in the current market downturn.

CryptoKea analyzes the Mayer Multiple indicator, which is used to determine speculative bubbles and short end moments in volatile markets. It refers to the current bitcoin price exceeding the multiple of the proposed moving average of 200, if higher than the long-term The moving average is bullish, otherwise it is bearish. CryptoKea believes that if you evaluate the current Meyer multiple, you will find that the current callback is very similar to the first “major correction” before the 2017 bull market.

He pointed out that if the history of 2012 and 2017 repeats itself, that is, a short-term bearish trend before the bull market, then the same bull market reversal will occur in the market in 2019.

This article comes from newbtc, the original author: Nick Chong

Odaily Planet Daily Translator | Moni

Source: Planet Daily

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