In technical analysis, the long-term Bitcoin chart suggests that the bottom is near and we may soon experience exponential raises at the rate of previous market cycles.
Cryptocurrency analyst and trader @davthewave stated that the Bitcoin price is approaching a buy zone — based on the logarithmic growth curve. The growth curve can be traced since Bitcoin’s inception in 2011.
Let’s take a closer look at this curve and see what does it mean for future Bitcoin price movements.
Very near the buy zone of the logarithmic growth curve. pic.twitter.com/u0lOXhKQHM
— dave the wave (@davthewave) November 19, 2019
Bitcoin’s Logarithmic Curve
The growth curve is found by using curved trend-lines in order to connect the highs and lows of the price. It has been validated several times and the Bitcoin price has never traded outside of it. On interesting development is the movement of the moving averages (MA). In 2015, a bearish cross between the 50- and 100-week MAs preceded a drop to the support line. Afterward, a bullish cross between the same MAs preceded the next bull market. The MAs are acting in an identical manner since 2018. A bullish cross is very close to occurring. Also, the Bitcoin price has never traded below its 200-week MA. Since the MA is below the support line, it makes it less likely that the latter will be broken.
Support
Looking closer at the support line, we can see that it currently is at $6000-$6500. While there is no immediate support there, this area also represents the 0.786 Fib level. Therefore, unless we experience an upward bounce here, a decrease towards $6000-$7000 seems likely. Even in the case of a bounce, the Bitcoin price should eventually fall back to this support line — which, then, would likely be higher. The line is at $7000 in January 2020.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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