The appalling performance of Bitcoin throughout 2018 resulted in a mass exit of speculative investors. All that is left are people who firmly believe in the future of cryptocurrencies.
While the near future remains bleak, historical trends indicate that Bitcoin is likely to go on a bullish run. This theory has been the subject of intense discussion among Bitcoin enthusiasts on different social media platforms.
"The future lies in the study of the past"
We're approaching the 420 day mark which ended the 2015 bear market and if history repeats itself, we're moving towards several months of accumulation and a new bull cycle starting mid-late 2019. $BTC #bitcoin pic.twitter.com/VX8ok9oFue
— Galaxy (@galaxybtc) January 14, 2019
According to a tweet by Galaxy, a leading digital currency analyst, a Bitcoin bull run is imminent. This speculation is based on past performances, particularly the 2014-2015 bear market. Back then, a 420-day plunge was followed by an accumulation period and an unprecedented bull run.
The ongoing bear market might be way off the 420-day mark, but the trends of the two markets are alike. This means that the probability of an accumulation period followed by a rapid soaring of value is very high.
Technical Indicators Predict A Bull Run
A similar prediction was made by a technical indicator used by traders to forecast the future performance of Bitcoin. The GTI VERA Bands Indicator analyzes periodical data regarding the performance of Bitcoin to project the cryptocurrency's behavior in the future. Apparently, the tool recently provided an odd signal that indicated a significant price increase is looming.
Yet another popular technical indicator, known as the Directional Movement Index (DMI), also showed that the buying pressure for Bitcoin is growing substantially. This metric has been rather steady throughout the bear market.
Mati Greenspan, a chief analyst at eToro, believes that Bitcoin still has much to do before people regain confidence in the digital asset. Specifically, he mentioned that the crypto must rise above $7,500 for investors to become bullish about it.
Only time will tell whether the analyses provided by the technical indicators are valid. Nonetheless, the positive forecasts offer a reprieve for investors who have endured losses for the better part of the last 12 months.