This week, just as bullish crypto investors and traders began to lose hope that Bitcoin could prevent a fall further to new lowers, a powerful reversal may have started, reviving sentiment across the crypto market.
The sudden surge appears to be in response to Bitcoin price touching a 4-year-long trendline for the 16th time.
Bitcoin Touches Long-Term Bullish Trendline For 16th Time, Will Defense Be Successful?
Bitcoin is a relatively new asset in the financial world, born just tens years ago as the first-ever cryptocurrency – an experiment created by Satoshi Nakamoto that also ushered in the age of a technology called blockchain.
But despite the asset’s young age, it’s already built up plenty of historical price action, including a trendline acting as support for the past four years.
The trendline dates all the way back to October 2015, just as the leading cryptocurrency by market cap was breaking free from its bottom trading range of its then bear market – a bear market that lasted a painful two years before the crypto market went onto embark on a bull run turned bubble, that burst in late 2017.
According to a prominent crypto analyst, this trendline extending back four years, all the way to Bitcoin’s most recent bear market bottom at $3,100, has been touched now a total of 16 different times.
$BTC 4-year Log Trendline update:
As mentioned, BTC was in the midst of a 15th test of a very clean 4-yr trendline
Clean b/c drawn w/ coordinates from base through the 2019 bottom it has ZERO weekly closes outside the trendline
Thus far, we have reclaimed intra-week yet again pic.twitter.com/pMiio2tVHX
The trendline touch prior ended with an inverse head and shoulders that sent Bitcoin to $7,800 before it was rejected, falling back down to sweep local lows. But it was a strong break below the trendline on the weekly that resulted in a powerful rebound at $6,450 after lows were swept, resulting in a $1,000 candle taking Bitcoin back to $7,400.
Breakdown From Trendline Could End The Secular Bull Market, Bring Forth a True Bear for BTC
The cryptocurrency is currently trading at roughly $7,200 at the time of this writing, and the market is currently confused as to if the defense of the trendline was indeed successful, and Bitcoin will push higher from here, or if this last surge was a final distribution pump before Bitcoin falls into its first-ever “true” bear market.
The cryptocurrency has said to be in a secular bull market on the highest timeframes, never falling into full bear territory on key indicators such as the MACD.
A break of this clearly vital trendline could be the last line of defense between Bitcoin’s next bull market, and a long-term bear market that could cause the cryptocurrency to fall completely out of favor, or even the complete destruction of the cryptocurrency industry leading to the bankruptcy of many crypto projects.