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While most of the crypto analysts across the market spent the bulk of 2019 overly optimistic and bullish, expecting Bitcoin’s bull run to have already commenced, one crypto analyst has remained cautious, waiting for Bitcoin’s parabolic rally to cool off and come back down to the “buy zone.”

That “buy zone” has been hit, although the analyst expects the leading cryptocurrency by market cap to remain within that buy zone for the bulk of 2020, putting Bitcoin in full “accumulation mode.”

Crypto Analyst: Bitcoin Will Remain in Buy Zone Throughout 2020

The crypto market is a fast-paced, wild-west style market that never sleeps or closes, and is filled with outspoken and often eccentric individuals acting as analysts, hoping to make predictions about future market movements to both profit and grow their followings.

Related Reading | Bah Humbug! If Bitcoin Bulls Can’t Reclaim $7,800 It’s Coal For Christmas 

Many of these short-sighted, fly-by-night analysts focus on short term swing trades only, giving them the appearance of being experts in space. However, they often fail to look at the bigger picture, or fail to take the approach of a long-term investor.

One prominent crypto analyst who almost solely focuses on long-term plays on assets like Bitcoin or precious metals, and even altcoins, has long shared charts that targeted the current price levels as an ideal buy zone. Some of the charts calling for Bitcoin to trade within this level were shared long before the crypto asset ever topped out in late June and early July.

Buying BTC In the Zone Could Result in Major Financial Upside

The analyst’s theories are based on Bitcoin’s long-term logarithmic growth curve, which the analyst claims serves as ongoing support for the crypto asset, which typically returns back to the curved support line, acting as at the asset’s “mean.”

After Bitcoin’s 2019 parabolic rally got overheated a little too fast, the analyst has long expected a return to mean that would take Bitcoin back down to $6,700.

Related Reading | Perceived Bitcoin Value Outpaced Peak Crypto Bubble Mania 

Now that Bitcoin price has reached the analyst’s targets for a low, he claims that while the first-ever cryptocurrency’s price may drop lower than current levels, it won’t stay there very long and instead will trade within this “buy zone” range for the majority of 2020, putting Bitcoin in “accumulation mode” according tot he analyst. 

Bitcoin was accumulated very briefly at the start of 2019, but it resulted in a breakout and parabolic rally into an echo bubble. And while some are still holding out hope for Bitcoin to reach $55,000 by its halving according to the highly cited stock-to-flow model, staying within the buy zone for nearly a year before the bull market begins could be a financial opportunity of a lifetime.

Tony Spilotro , 2019-12-04 20:00:14

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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