The cryptocurrency market, especially Bitcoin, is at a significant inflexion point. Becoming a household for about overnight, thanks to the late-2017 media blitz that fueled the crypto’s meteoric ascent to its all-time high of $20,000, and the resulting bubble pop which led to the longest bearish market on record, Bitcoin needs to prove itself once again that it’s here to stay.
As Bitcoin nears closer to the vital support turned resistance level at $6,000, a clean break of the former springboard as well as close above the resistance could show traders and investors that it’s off to the races for a new bull market.
Two different charts from different financial markets seem to look eerily similar to the path that Bitcoin took throughout the bearish market until this significant turning point and could hint at what may happen next in Bitcoin price charts.
Turkey’s Lira Chart
In a recent tweet by prominent cryptocurrency trader CryptoWolf, the analyst shared a chart with amazingly similar peaks and troughs matching BTC’s 2018-19 bear markets and could serve as a bullish prediction for BTC’s path onwards.
The forex market chart shows the price of the USD/TrY trading pair. As seen, the chart shows the USD paired against the Turkish Lira very closely resembling each swing high and low of the BTC bear market.
Also, there’s a V-shaped low that follows a blow-off top developing into what ultimately became a failed Adam and Eve bottom. Later on, an inverse head-and-shoulders much like the late June, early July bottom in BTC, played out but was unable to reinvigorate the bulls to end the bearish market decline.
Thereafter, the support broke out, painting a new low which quickly rebounded, revisiting the previous highs in just a couple of months once candles closed back going above the support turned resistance.
Currently, Bitcoin, at the same support, turned resistance that once broken, that resulted in a trip back to the peak. If the same happens in the case of Bitcoin, then the price of the cryptocurrency asset could hit $20,000 by July if the chart plays out the same. But similar to the analyst stating that “at the time this was pure hopium,” any bulls considering $20,000 is around the corner is solely relying on the “hopium.”
Silver’s Bearish Version for Bitcoin
Sure, there are many similarities found in many charts, since markets tend to cycle similarly. In the price chart for Silver shows a similar trajectory as BTC.
#Bitcoin vs $Silver$Silver posted 1000%+ parabolic gains/crashed$BTC too posted parabolic gains/drop$Silver found support at 200 Month MA$BTC found support at 200 Week MA$Silver found resistance at 50 Month MA$BTC struggling against 50 Week MA
(Comparison for Fun only) pic.twitter.com/aV5Xo9wlAn
— Trading Room (@tradingroomapp) April 30, 2019
Following the break that chartists like Peter Brandt claim can cause the price of any asset to decline more than 80% on average, Silver found support at the 200-month moving average. On the other hand, Bitcoin found support on the 200-week moving average.
Then, Silver rallied from the support, ultimately running head first into the 50-month moving average. Currently, BTC is flirting with the 50-week moving average.
Silver was not able to break through the resistance caused by the 50-month MA, that caused the asset to fall one more time. But, this time breaking the 200-month moving average which had previously played support.
In case Bitcoin was to fall from here, then the 200-week moving average currently rests at roughly $3,450, and a break below it would lead to panic and new lows for the leading digital currency by market capitalisation.
As noted, Bitcoin is at an essential point in its lifecycle and whatever happens next could impact its longevity as financial tech.