Bitcoin price predictions have been coming thick and fast over the past couple of months as analysts and investors attempt to foresee when the bottom will be in. This serves as the best buying opportunity but very few traders get it exactly right so getting close should be good enough.
No Return For Bulls Until Trendline is Broken
Bitcoin has failed twice so far this year to break key resistance levels, the first at $4,000 and then again at $3,600. As resistance zones keep falling, the down trend line from the top gets repeatedly tested and rejected indicating that more pain is imminent.
The new resistance level for Bitcoin for the week has been $3,500. It has hit this twice in the past seven days and instantly bounced off it, settling at $3,460 or thereabouts. The signals are still looking bearish and according to some technical indicators Bitcoin will be at or below $3,000 by April.
Prominent analyst Murad Mahmudov has identified clear buying and accumulating zones if this down trend line remains intact. Only when it has been broken will the Bitcoin bulls return; “Break that trendline before we can even think about having bullish discussions.”
The only chart you need.
My rough view on what I believe is going to happen.
Break that trendline before we can even think about having bullish discussions.
Patience is Virtue. pic.twitter.com/mb5y3Xh3cK
— Murad Mahmudov (@MustStopMurad) February 6, 2019
This chart has been used to predict future movements based on past ones which serves as the basis for most technical analysis. A return to ‘Bitcoin Hell’ puts it between $1,800 and $3,000 between April and October this year. Only when the down trend gets broken, which Murad claims will be around September or October, will and real and measured reversal take place.
The buy zone is from June to August when Bitcoin is predicted to be around the $2,400 level. Accumulation can continue until it breaks above $3,000 again later in the year, this will be the depth of crypto winter which is likely to see all other altcoins in even worse shape.
According to Murad, institutions will not enter the market until there is a clear trend reversal a stronger buy signals such as the breaking of the MA50. Neither are expected for another nine months or so if this chart action plays out.
Using the same chart Murad has also foreseen a final capitulation with one wick extending down to $1,800 before Bitcoin returns to consolidate around $2,400 for the best part of the year. This is a figure that has been echoed using fractal pattern analysis. The longer this plays out the more accurate this prediction becomes as it takes guidance from the previous bear market of 2014 and 2015.
Predictions are just that, educated guesses, but the strong probability of further losses before new gains cannot be ignored.
Image from Shutterstock
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* First published on newsbtc.com