This week’s monumental market crash has resulted in Bitcoin dumping 20 percent in just a couple of days. Technical indicators are now showing that a trend reversal could be imminent and the end of the 2019 bull market may have just begun.
Bitcoin Bull Market Over?
Bitcoin could only manage a feeble climb to $8,640 over the past few hours which indicates that more pain lies ahead. The bulls have all left for hills leaving the bears gearing up to inflict more pain on crypto markets.
At the time of writing Bitcoin has pulled back below $8,400 but appears to be holding here for the time being. As yet there has been no fall into the $7,000 region but the longer BTC flails around current levels the more likely this will be.
Trader and analyst ‘Crypto Hamster’ noted that BTC has never dropped out of the Bollinger Bands in a bull market before.Bitcoin have NEVER dropped below the lower Bollinger Band on a bull market so far. Now it is at ~7700$. So, either ~8k is a bottom, or this is not a bull market anymore.”
Confirmation of this trend reversal would be a death cross on the daily chart. This is still a while away yet, but the last time the 50 MA dropped below the 200 MA was in March 2018 and a year-long bear market followed.
The bearish sentiment seems to be spreading. Analyst Josh Rager pointed out that selling pressure on altcoins is still strong indicating that there will be no bounce from this level.
Have seen more selling pressure after the breakdown of Bitcoin – people realize this isn’t likely to be a quick “v” reversal. I expect some alts to see new lows for this year against Bitcoin. Can lose 20%+ more as Bitcoin likely hits $7ks again”
Others are of the opinion that altcoins have already bottomed and Bitcoin’s losses could be their gains. At the moment BTC dominance is still over 70% according to Tradingview.com so this scenario is not playing out yet.
Since the beginning of the week crypto markets have dumped over $40 billion, or 16 percent. They could easily go sub-$200 billion again if BTC falls back to $7k. It is highly unlikely the altcoins will recover independently as they did two years ago.
Some analysts are predicting a drop below $6k which could make things really interesting. “2 Months ago July the 12th-17th, I called off the Bull Run as one of the first. Not only that, as you can see I told you about targets between 7.4-5.5k.”
It appears that most of the analysts are in agreement that there is still more pain to come for Bitcoin. The questions remain: how low will it go this time and how many will be buying the dip?