The sudden popularity regarding blockchain technology in China is exciting. However, these positive stories aren’t having the expected effect on Bitcoin’s price.
For example, the China Merchants Bank has recently announced that it has made an investment in the crypto wallet BitPie, arguably one of the most popular wallets used by Chinese investors. Even though the company operates out of Australia, it has deep roots in Beijing.
However, Bitcoin’s price may soon start heading upward. According to our analysis, BTC is likely to make a final downward move before resuming its uptrend.
Crypto trader @davthewave stated that according to a fractal which successfully predicted the December 2018 bottom, Bitcoin will continue decreasing for a “few more weeks.”
A few weeks to go for the optimal buy price *on the basis of this fractal*. pic.twitter.com/qxox0PpvCO
— dave the wave (@davthewave) October 30, 2019
According to the chart, the Bitcoin price will make a bottom around $6500 by the end of November, right at the 0.5 fib level of the entire upward move beginning in December 2018.
Let’s take a closer look at this movement.
Long-Term Bitcoin Analysis
Looking at the logarithmic chart for the Bitcoin price movement since 2011, we can use curved trendlines to connect each top and bottom.
As we can see, while BTC touched the support line in December 2018, it has not reached this since.
This has not been the case in previous accumulation phases after a long bearish market, in which the price consistently traded near it before eventually beginning an upward move.
The support line is currently near $6500.
If we make a comparison with dates of halving (vertical lines) the price is likely to decrease once more to the support line, consolidate close to it, before eventually beginning an upward move.
This final decrease fits with the fractal presented by @davthewave and the movement of the moving averages (MA). The decrease would cause the 100-week MA to do the same, causing a bearish cross rejection a short-term before halving, similar to what transpired during the 2016/2017 movement.
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.
Images courtesy of Twitter, TradingView.
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