Bitcoin (BTC): Before, During and After the Bull’s Run

Bitcoin (BTC): Before, During and After the Bull’s Run

$BTCUSD

‘Capitulation’ is Bitcoin (BTC) investors word of the year.

Bitcoin rose to $20,000 and fell to $3,700 the market is open at the time of this writing leaves players wondering if Y 2019 is a Year for Bulls.

Bitcoin is a new, low volume asset class trying to gain traction, as the fundamentals play exaggerated role with price action, and technical analysis is gradually becoming more reliable.

Capitulation refers to a time when participants/holders of an asset are indefinitely committed to holding and panic sellers have cut their losses, forming a true bottom in the market.

So, using technical analysis, I am looking to find the support for the Bear run.

To find true support, it is important to understand the long-term movement from $1,000 to $20,000.

Y 2017 showed this meteoric price increase and prior to this Bull run, the price was gradually increasing from $700 – 1,000.

As you can see in the chart below, the full Y 2017 was a continual, irrational Bull run filled with hype and over-valued ICO’s, with strong support at $1,000.

The volume during Y 2017 was unprecedented, which means that lots of buyers and new investors were buying in all the way up to $20,000 per Bitcoin.

Once Bitcoin broke $2,000 there was virtually no resistance.

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Daily chart

Now, let’s look at the other side, Y 2018, the end of the Bull’s run.

Throughout Y 2018, the market has yet to find its support.

Each day news outlets and influencers calling bottoms, but so far there is none in place.

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Daily chart

Taking a 3-month view shows signs that a bottom may be approaching.

For a look at what we see for Bitcoin once the bottom is set, click here.

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Hourly chart



Have a Happy New Year!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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