During the recent period, BTC has hit numerous important markers — the globally noticed golden crossover and the bullish crossover that took place at two moving averages, 50-candle, and 200-candle. However, a few days later, these promising occurrences were followed by BTC’s selling struggle. The mentioned 50-candle MA has a promising trajectory, and it seems it will cross overhead 200-candle MA in the following period.
Back at the beginning of 2016, the BTC bull market was taking its first steps, and the golden crossover, similar to the recent one, was visible. It’s important to note that a few days prior to the mentioned golden crossover, the prices decreased to the 200-candle support.
According to the data from February 2016, BTC went through a series of struggles before the golden crossover. In the period before that, at the end of 2015, the maximum price was $467. The trajectory of the BTC price during the mentioned period resembles a lot the most recent market development.
During March, Bitcoin hit a new low when its value dropped to $4,000. However, in the meantime, Bitcoin more than doubled its value — recently, it climbed to $13,880. The cryptocurrency continues to fluctuate, and after the mentioned rise, it declined again. The price of Bitcoin has lowered one more time, now for 30%, settling at the price of $9,600.
Can We Predict New Developments?
Judging by the historical data on BTC, the continuous decline could keep progressing until it reaches the 200-candle MA, at $7,448. However, the value of BTC could make an extreme leap afterward and proceed with the bull market.
In the financial world, history often repeats itself — the same rule can apply in the world of the BTC market. It seems that during December 2018, the oldest cryptocurrency has been experiencing difficulties. Let’s remind that we are talking about the moment that is separated from the fifty percent reduction of the mining reward in Spring of 2020 by a whole year and six months.
The analysis of the period between July 2019 and the beginning of 2019 points to numerous similarities with the period at the end of 2015 — the moment that predated the historical bull market. Two months prior to BTC’s entrance into the bull market and two months afterward, BTC hit the value of $3,100 — a critical BTC landmark was noticed. MAs generated the new crossover — sellers gained control and caused a prolonged reduction in value. Now, quite a similar situation was recorded a few months prior to BTC’s bullish crossover from the Fall of 2015.
There is a series of reliable indicators that lead us to believe that BTC will hit the 200-candle MA, with a value of $7,448. Also, there are reasons to assume that after the mentioned drop, BTC will make a strong comeback, and the new golden crossover will be observed.