— Cryptoponzi Rampage (@thrillmex) January 13, 2020
As Thrillmex further pointed out, if Bitcoin follows the exact same trajectory it took in the wake of China’s pump, the price of BTC could fall as low as $6,400, lower than the mid-December 2019 low, by the start of February — not that far away on a macro scale.
This would represent a 23% drop from current levels, and would line up with a number of analyses which suggest that the cryptocurrency market will see one final shakeout before a return to a decisively bullish state. Related Reading: Ethereum’s Price Chart Just Printed This Extremely Bullish Signal Bulls Could Save the Day, Per These Indicators
Although the similarities should not be ignored, there are a few key bull signals that were not present during Bitcoin’s now-infamous China pump.
Firstly, Financial Survivalism, the cryptocurrency trader that last week called Bitcoin’s surge to above $8,000, recently noted that the Lucid Stop and Reversal indicator, which “signals a stop and an entry in the opposite direction” when it reverses, just printed an extremely bullish signal. The indicator shows that Bitcoin just saw its first buy signal since March 2019, with the trend as defined by the SAR turning bullish.
Also, per Commitment of Traders data, there has been a “dramatic increase in long positions” held by traders deemed “Asset Managers.” A very similar surge in asset manager long positions on the CME’s futures contracts took place on the week (early-April 2019) Bitcoin began a 330% rally to $14,000. Featured image from Shutterstock ...