Very few people know about the critical level of bitcoin. Bitcoin has broken out of several levels of resistance. Is it possible, as Alessio Rastani said in his recent interview with the YouTube channel Cypto Cru University, that the bear market will be “short-term”?
This question can be answered by a key chart. Let’s take a look at the higher period of Bitcoin’s monthly chart and why a key level on this chart could be important in the coming weeks and months.
We will also look at past examples of the 2018 bear market to see what we can learn about cryptocurrency price trends.
Recent analysis by Alessio Rastani suggests that bitcoin is facing resistance above the 200-day SMA. This is an interesting comment as BTC has already surpassed the 200-day EMA.
The analyst believes that the current bounce will eventually fail and the price will return to its old support.
The crypto market will recreate the 2018 bear season
According to Rastani and other industry analysts, the crypto market may be following in the footsteps of 2018.
In early 2018 a month after bitcoin hit an all-time high of $20,000, it was predicted that the market would not move any further and an 80% retracement was imminent. A year later, BTC/USD hit the local level at $3,100, a decline of 84.5 percent.
However, in 2015 and 2018, the RSI readings fell too low to attain bear market lows before the main digital asset began a rally that saw it climb all the way to the end of the year.
Bitcoin is currently trading at $29,302, down 6.5 percent from its seven-day high of $31,319 at the time of writing.
Is Bitcoin still moving in a bullish channel according to Elliott Ripple?
“It is time to be bullish on bitcoin as Elliott Wave maintains its course; breaking below critical support could invalidate bullish sentiment,” says Rastani.
He further elaborated on the wave pattern, with wave one setting a new high, followed by a wave two pullback that does not fall below the level where the first wave started. Wave three sets a new high, followed by wave four, which sets a new low.
On the chart of Bitcoin, Elliott Wave is currently taking shape. If the low level of around $33,000 is not broken in wave four, the argument will be rejected. A breach below $33,000 would be a significant bearish signal.
He believes that the market action will soon turn bullish and a break above $45,000, which is the first major resistance level, will be very bullish. He predicted that if the Elliott Wave Theory is correct, bitcoin would hit a new high in the $74,000 range.
Stick to your assets and stick with your long term plan!
With massive bloodshed in the market and global issues in the industry, coins could be in more pain in the coming months. That’s why investing in bitcoin carries many risks. When the volatility is not in your favor, the crypto market can be incredibly damaging.
They also happen unexpectedly and suddenly. If you are thinking about investing in bitcoin, stop-losses are a great way to protect your money. It is also worth remembering that the crypto markets are open 24 hours a day, seven days a week. So to conclude the market analysis one can say that long term investment in 2022 is a right approach.