It seems that all the odds are stacked against Bitcoin (BTC) once again. Over the past few days, the leading cryptocurrency has lost the key $8,000 support level for the umpteenth time in a matter of a few weeks, tumbling from that level to $7,400 over the past 48 hours.
Related Reading: Bitcoin Price Jumped 42% Last Time It Hit This Level, and BTC Has Tapped It Again
While BTC remains a tad above the $7,300 low seen in late October, analysts suggest that the crypto market is ready to head lower. Peter Schiff, for instance, said on Thursday that he expects for Bitcoin to fall towards $1,000, which would mark a decline of over 85%. He backed his target by noting that the cryptocurrency is trading in the midst of an extended head and shoulders chart pattern, which is currently looking poised to breakdown.
Though, a key bull indicator that is unlikely to be invalidated is approaching, signaling that there may be a bullish case for the crypto market after all.
Key Bitcoin Bull Cross Approaching
Like Jack in Titanic, it seems as though it’s over for bulls. After surging 42% in a single day’s time at the end of October, Bitcoin has retraced the entirety of that move, with bulls failing to sustain the bullish trend that could’ve formed should a drop post-surge failed.
Though, this isn’t the end of the world, according to the 50-week and 100-week moving averages anyway. Analyst Crypto Bull recently observed that these two moving averages are about to see an extremely bullish “golden cross” in the coming one or two weeks, with the short-term average crossing above the long-term one. This implies that bulls have control of the market in the long term, not bears.
Indeed, this specific golden cross seemingly kickstarted the parabolic bull run that brought Bitcoin from $1,000 to $20,000 last cycle.
50/100 week ma bullish crossover in 1-2 weeks.
The last time that happened:
Price was $430 (down ~62% from ATH)
A few months before the 2nd halving
Price is $7,600 (down ~62% from ATH)
A few months before the 3rd halving pic.twitter.com/CrZi37YrfG
— Crypto₿ull (@CryptoBull) November 21, 2019
As Bull further notes, the last time this happened was in 2016, just months prior to the last halving and when the price of BTC was down 62% from its all-time high. What would you know? Bitcoin is currently 62% down from its all-time high and it is a few months out from the next halving.
History repeating would see the leading cryptocurrency begin its next parabolic run-up once the cross takes place by the end of the year, barring an utter collapse in the crypto markets.
This isn’t the only bullish argument that has been proposed over recent days. Trader Coiner Yadox recently noted that Bitcoin’s price action from the long-term bottom of $3,150 established in December of 2018 until now looks much like a textbook Richard Wyckoff pattern, which is marked by a strong surge upward after a bear market, a double-top pattern, an accumulation throwback, and then a bullish continuation after a bullish breakout.
Yadox suggested that should his interpretation of this Wyckoff pattern be correct, Bitcoin found a medium-term bottom at $7,400, and will soon see a strong breakout to the upside.
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