Since the CoinSyncom’s TA team predicted the exact movement of BTC on the triangle beak down only hours before it actually happened, it is only right that we introduce you to the long-term Bitcoin chart analysis spiced up with a price prediction for the coming year.
Yes, Bitcoin is currently in trouble. However, there is hope for all long term holders. Moreover, if you trade correctly, you may find yourself with much more BTC than you had for the next bull run.
Two possible scenarios
It is always a great idea to take a step back and look at things from a different perspective. That is the exact reason why we bring you a Bitcoin daily chart analysis instead of dissecting a shorter timeframe.
However, the daily chart reveals two possible formations.
The first one is a falling wedge you’ll see in the chart below. All the lower highs and lows are clearly visible and it has been going on for quite some time. If Bitcoin “decides” to further follow such a cascading downward trend, it is clear that it will have a bullish reversal at the end.
The only question, of course, is when will we know if the king of crypto will retain such a movement. The first thing to watch is the next support level. As the chart below reveals, the next support is at $7,400.
Historically, this is important since this level already acted as resistance and support. It is also visible that, inside the wedge, Bitcoin already bounced off that level once. If the mentioned support holds, it is quite possible that BTC takes another, maybe even more dangerous road.
On the other hand, if it breaks the $7,400 level, will be clear how to trade until the eventual reversal. Nevertheless, if this critical support holds, it may yet prove to be a much worst thing for BTC holders. Yes, we understand it is a paradox but it is also highly possible.
Well, take a look at the following chart.
Our Bitcoin chart analysis also revealed that the number one cryptocurrency is also faring inside the descending triangle. That formation will definitely be confirmed if the mentioned $7,400 support holds. More experienced traders will understand where the paradox lays.
The descending triangle is a 100% bearish formation. So is a falling wedge. However, contrary to the bearish wedge, the descending triangle doesn’t announce a bullish reversal. Therefore, for Bitcoin holders, it would be better in the long run if the support breaks as it will bring the imminent bullish reversal.
Still, keep in mind that possible huge fundamental occurrence can invalidate the technical analysis. For example, a big exchange hack or a major twist in regulatory wireframe in some of the world’s leading markets. The latter can easily make Bitcoin break out northwards as a result of a rising investors’ level of trust.
Bitcoin support levels chart analysis
In any case, it seems that Bitcoin decided to sing a bit more. On the way down, of course, there are a few critical levels traders have to be aware of.
After the already mentioned $7,400 support level, there are three more which are absolutely crucial.
- (God forbid) $3,600
All three mentioned are historical barriers that held BTC above the water many times. Therefore, for all BTC believers, all three mentioned levels would be good long-term positions. It is a technical and fundamental analysis combined, however, which will prove crucial for those who want to take the best possible opportunity.
An interesting thing on the chart analysis…
Human behavior is, sometimes, really interesting (and cyclical). Just like there is a pattern in Fibonacci number, BTC trading reveals a fascinating fact. Believe it or not, 14 days (or two weeks) is a period that proved pivotal for Bitcoin as sixes are for Lucifer.
And we have proof!
From May until September 2019, the majority of the biggest Bitcoin’s price movements came in two-week spans. As the chart above reveals, Bitcoin hit every major high exactly at that 14-day cyclical position. Not only that, but the biggest price rally also followed the same pattern (the green arrow).
Fascinating, isn’t it?
Nevertheless, after September, Bitcoin’s price abandoned the two-week pattern so we can only view it as something interesting and exotic.
Bitcoin long-term price prediction
Historically (yes, again), BTC mining rewards halvings brought massive price spikes as direct results of the asset’s new level of scarcity. However, those spikes didn’t come so quickly. For example, after the 2012 halving, it took a year for Bitcoin to hit a new all-time high (ATH). After the same event in 2016, it took a year and 3 months. Therefore, traders shouldn’t expect immediate bullish results. Of course, this is only a historical point of view.
Regarding other long-term predictions, the majority of sources are bullish. Nevertheless, it is a rarity to find a prediction such as CoinSyncom’s that is based on hard technical evidence.
Having in mind everything that we dissected in this article, we may conclude that Bitcoin is bound to take another step back before the next price rally. It depends on those support levels how much will it sink. Nevertheless, halving should bring results every BTC enthusiast desires so much.
Since historia magistra vitae est, we at CoinSyncom believe that 2020 will pass without the new ATH for Bitcoin. It may even take the whole first fiscal quarter of 2021 for BTC to reach the next peak. Nevertheless, our TA team firmly believes that it will come.
Without any further ado, we’ll define our forecast for the endings of the this and the next two years.
- 2019 – $7,000
- 2020 – $19,000
- 2021 – $65,000
You should look elsewhere for investment advice since this isn’t it. Even if it looks like it, it’s not. Cryptocurrencies are known to be extremely volatile and risky speculations. Always do your own research. Consider to consult an investment professional prior to investing your money.