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  • Cryptocurrency is up around 180 percent since last year
  • Every Bitcoin Bull Run has got something in common

Over the past 12 months, the leading cryptocurrency is up by around 180 percent. This could be the end for many people as they believe bitcoin could have run its course, and now might be the time to short the market…

While a quick short might be profitable now, one trader thinks that the £10k difference rally from $3k to just over $13k was just a warm-up, nothing more. At the time being though, whereas a quick short could see a profit, there is one analyst who thinks the rally from $3k to nearly $14k is nothing but a warm-up. In fact, the same analyst claims that all four Bitcoin bull cycles were just localised bubble.

Every bitcoin bull run has got something in common and that is that they all saw the BTC price surge by a minimum of 340 percent from the top of the prior cycle.

The crypto analyst, Cole Garner shared his thoughts to CCN, saying:

“Each bull market topped out at a minimum of [nearly] 5x the previous top, and I expect that to happen again the next time around.”

In laymen’s terms, this basically means that each bull cycle has an order of magnitude according to Garner adding, ”each BTC bull market is more dramatic than the previous one.”

Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

But in terms of when he said, bitcoin is just a big bubble, he is dead serious. This is because they were mostly funded by retail investors.

The current bull-run is currently powered by big institutions. They were buying in at the bottom of December 2018, while traders counted their losses.

In explaining the significance of institutional entry, Garner says:

“Barely anyone noticed the first bull market of 2011. The next time around, in 2013, we saw real capital flow into crypto, but no media attention. In the bull market of 2017 crypto approached a trillion dollar market cap, with global media attention.

Each has more fiat inflow, more media attention.”

Robert Johnson , 2019-11-30 01:00:00 ,

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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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