Bitcoin, and the rest of the market, have been floundering of late. Thought, the charts might be giving us something to hope for, according to TechDev. We might yet still see the resumption of a Bitcoin bull market…  Covered: Bitcoin Bull Market: Wen Blowoff Top? Similarities to 2019 Does This Mean The Bullrun Hasn’t Really […] The post Should This Backtest Hold, Bitcoin Could Be Looking At “Explosive Move” Says Tech Analyst appeared first on CryptosRus.

Should This Backtest Hold, Bitcoin Could Be Looking At “Explosive Move” Says Tech Analyst

Bitcoin, and the rest of the market, have been floundering of late. Thought, the charts might be giving us something to hope for, according to TechDev. We might yet still see the resumption of a Bitcoin bull market… 

Covered:

  • Bitcoin Bull Market: Wen Blowoff Top?
  • Similarities to 2019
  • Does This Mean The Bullrun Hasn’t Really Even Started?

Bitcoin Bull Market: Wen Blowoff Top?

There’s no sense in crying over liquidated trading accounts. What’s done is done.

As they say, “the best-laid plans of mice and men oft go astray.” And, so astray they went.

As we laid out before, the end of 2021 was looking bullish. But, now that we are almost half way through December, there ain’t much time for 2021 to get anywhere near the levels anticipated by many in the community. But that’s hardly news to anyone who has bravely looked at their portfolio the last few weeks.

What happened? Did traders use the anticipation of an end of year run against retail the same way they used Bitcoin Day against them? Or could we blame this whole dip on the Transformer sounding variant? Who knows, and who cares. There’s no sense in crying over liquidated trading accounts. What’s done is done.

The question remains, though, wen bear market?

TechDev isn’t sure that’s the question we should be asking right now.

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Similarities to 2019

“Bitcoin from October 2020 to now, looks to be playing out a similar structure as Bitcoin 2019 to September 2020 on the weekly timeframe,” says analyst TechDev.

The end of 2019 might not seem like a particularly bullish time, especially since what happened around March of 2020, but it was technically the very beginnings of the bull market. Gotta start somewhere, right?

TechDev continues, “Both began with a large run-up which led into a rounded distribution top, marked by either exaggerated or bearish RSI divergence. Though not obvious at the time, this began a months long consolidation period during which a symmetrical triangle pennant formed on the weekly timeframe.” You can see the pennant forming in the chart above. It appears we are around the end of the retest.

“2020 saw the COVID black swan global market crash disrupt this pennant, but it was re-entered relatively quickly,” TechDev added. “Much like 2019-2020 pennant, we now seem to be backtesting the breakout resistance, again both in terms of price and RSI.”

So the signs are pointing to some structural similarities between 2019 and now, but the similarity only goes as far as this upcoming 2022 backtest, as the chart shows.

“Should this backtest hold and price resume off, I believe it probable that Bitcoin sees a similar if not more explosive move to that seen after the successful 2019-2020 backtest.”

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For more TechDev, make sure to check out his newsletter launching this week. Also, follow him on Twitter for the latest, greatest technical analysis.

The post Should This Backtest Hold, Bitcoin Could Be Looking At “Explosive Move” Says Tech Analyst appeared first on CryptosRus.