Charting Expert: Bitcoin Technical Damage Will Take Months to Repair



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Price analysts and charting experts are conflicted as to whether or not the recent price rise and persisting stability for Bitcoin and the general cryptocurrency markets signals growing strength or represents the calm before the storm.

One charting expert believes that the technical damage done to Bitcoin over the past nine months will take several more months to repair, and that the markets aren’t ready for a rebound quite yet.

At the time of writing, Bitcoin’s price was flat, trading at approximately $6,560, down slightly on a 24-hour timeframe. Over the past few weeks Bitcoin has been trading choppily in a range between $6,300 and $6,800, leading many altcoins to rally as Bitcoin expressed less volatility.

Despite the growing market sentiment resulting from Bitcoin’s increased stability and major altcoin gains, some experts are warning investors not to get too hopeful just yet.

In a recent note to clients, Rob Sluymer, a technical analyst expert at Fundstrat Global Advisors, explained that although market sentiment is growing, it will likely require some time before Bitcoin and the cryptocurrency markets see another bull run.

“Given the technical damage that has developed in 2018, we expect most cryptocurrencies will likely require months of repair before a new bullish trend can develop. This is consistent with post-bear-market behavior that has developed in other asset classes following bear markets.”

Sluymer also noted to clients that a break of the $7,400 resistance that was formed in early September would be the first step towards a bull run, but until then there will likely be choppy trading and increased volatility.

Experts Have Conflicting Opinions on Bitcoin Price Action

Despite Sluymer’s tempered tone regarding the next bull run that so many investors are patiently anticipating, some other analysts have expressed greater optimism about the imminence of a bull run.

Last week, Naeem Aslam, a prominent analyst for Think Markets U.K., said that the current Bitcoin price action reminded him of that of last September’s which notably preceded the major rally that built momentum throughout October and November, reaching its climax in December when Bitcoin’s price nearly reached $20,000.

“September is coming to an end and a very interesting quarter is about to start. Does it remind you of anything? Oh yes, it reminds me of last year’s bull rally.”

In Septmeber of 2017, BTC found itself in a similar price range, ranging all month between $3,000 and $4,000 before going parabolic in the following months.

“It appears to me that a similar momentum could be building up again. This must be music to those who are suffering from heavy losses in the crypto market,” Aslam said.

If Aslam is correct, Bitcoin’s price could reach all-time highs in the coming months, and this could be driven by the widespread belief that bull runs frequently occur in winter months due to pricing cycles.

As Sluymer warned, however, investors should express caution in this type of speculation, as 2017’s cryptocurrency bull run and proceeding crash was widely reported by major news organizations. This is likely dissuading much of the public from making speculative investments based on potential market cycles.

Featured image from Shutterstock.

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