Few individuals are aware of the Bitcoin critical level. Bitcoin has broken through several levels of resistance. Is it feasible, as stated by Alessio Rastani, in his recent interview with the youtube channel Cypto Crew University that the bear market will be “short term”?
This question could be answered by one key chart. Let’s take a look at bitcoin’s higher period monthly chart and why a major level on this chart could be crucial in the coming weeks and months.
We’ll also look at past examples from the 2018 bear market to see what we can learn about the cryptocurrency price trends.
The recent analysis by Alessio Rastani, shows bitcoin hitting resistance above the 200-day moving average. It’s an interesting remark because BTC has already pushed past the 200-day MA.
The analyst believes the present upsurge will eventually fail and the price will return to its old support.
The Crypto Market Will Recreate the 2018 Bear Season
According to Rastani and other industry analysts, the crypto market could follow in the footsteps of 2018.
It was predicted in early 2018, a month after Bitcoin hit all-time highs of $20,000, that markets would not move any higher and that an 80% retracement was imminent. A year later, BTC/USD hit local lows of $3,100, a drop of 84.5 percent.
However in 2015 and 2018, RSI readings sank much lower to achieve a bear market bottom, before the main digital asset began a rally that saw it soar all the way to the end of the year.
Bitcoin is currently trading at $29,302, down 6.5 percent from its seven-day high of $31,319 at the time of writing.
Is Bitcoin still sailing in a bullish channel as per the Elliott wave?
“It’s time to stay bullish on Bitcoin as the Elliott Wave maintains its course; breakdowns below critical support could invalidate bullish sentiment,” says Rastani.
He further elaborated on the wave pattern, Wave one establishes a new high, followed by a wave two pullback that does not fall below the level where the first wave began. Wave three establishes a new high, which is followed by wave four, which establishes a new low.
On Bitcoin’s chart, the Elliott Wave is currently taking shape. The argument will be discredited if the low of around $33,000 in wave four is not broken. A breach below $33,000 would be a significant bearish sign.
He believes that market action will soon turn bullish and that a break above $45,000, which is the first major resistance level, would be very bullish. He predicts Bitcoin will reach a new all-time high in the $74,000 range if Elliott Wave Theory holds true.
Hold on to your assets and stick with your long-term plan!
With massive bloodshed in the market and global issues gripping the industry, coins may see more pain in the coming months. So investing in Bitcoin carries a number of risks. When the fluctuations aren’t in your favor, the crypto market may be incredibly damaging.
They also occur unexpectedly and abruptly. If you’re thinking about investing in Bitcoin, stop-losses are a great way to protect your money. It’s also worth remembering that crypto markets are open 24 hours a day, seven days a week. Hence to conclude the market analysis one can say a long-term investment is a right approach in 2022.
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