With a constantly expanding Bitcoin course, the deepest point does not seem to be in sight yet. And based on patterns that form the BTC course, analysts indicate that volatility will increase in the coming period. The longest lasting bear market ever for Bitcoin therefore seems to have a big move in store.
At this moment, the $ 3,400 level is a support level for BTC, with $ 3,500 as resistance level. If the price breaks below $ 3,400, the next important support seems to be $ 3,000. Based on, among other things, the formation of a so-called wedge pattern, that movement can take place under the $ 3,400 in the near future.
However, Matti Greenspan from eToro indicates that despite the fact that the current bear market is the longest-lasting ever, it is not the strongest in terms of price decline:
From December 2017 to today, bitcoin declined 82% from the peak to the low point at the moment, over a period of 413 days. However, it should be noted that although this is the longest bear market ever, it is not the lift length. The five-month bear market in 2011 saw a decline of 93% and the cryptowinter from late 2013 to early 2015 saw a total decrease of 86%.
He also noted that the price has formed seven wedge patterns since the beginning of the bear market. After such a pattern has been formed, the price breaks up or down considerably in many cases. After four of the last seven weighing patterns the course broke down. This may be an indication that when the current pattern is formed, the price will break out again.
Josh Rager, another Bitcoin analyst also warns his followers on twitter for a possible sharp decline in the near future:
Still consolidating in a channel – possible bear flag for a continuation down
Volume isn’t great – hoping to see some volatility this week pic.twitter.com/GZKLdfsV91
— Josh Rager 📈 (@Josh_Rager) 4 februari 2019
BTC is still consolidating into a channel – possible bear indication for further decline. The volume is not great but we hope to see some volatility this week.
In the coming days, chances are that volatility will increase. However, it can not be said with certainty whether this will have positive or negative consequences. At the moment, however, it seems that the end of the crypto winter is far from in sight.