In the last three weeks, cryptocurrency markets have held on to gains and developed new trading ranges. In regards to total market capitalization this is between $170 and $185 billion with Bitcoin holding above $5,000. More analysts, working with earlier chart patterns as a guide, feel that this consolidation could continue for several more months.
Maybe Months of More Accumulation
By matching up the weekly chart from 2015 one crypto analyst has recognized that we may well be trading a remarkably similar moving average formation at the moment. Looking specifically at the 50 week moving average there was an initial bounce off of that back in 2015, then a further 105 days of accumulation when Bitcoin recoiled again.
Only when BTC retested the 50 MA and broke through it did the bull run start fully. This happened in October shortly after the initial test in July. A comparable scenario in 2019 might play out if Bitcoin does not break resistance at the 50 MA. Taking a look at the weekly charts on TradingView shows that it could test this level at the end of April.
A bounce back from that could see BTC drop back into the low $4,000 s and stay there until about August when it moves back up to the previous resistance level.
$BTC #bitcoin Weekly 2015 VS. 2019 – see how we “may” be trading a similar pattern and moving average formation!
See red arrows for previous patterns in 2015, versus 2019 on the last pic. Also, a possible trend reversal and Bull run in 105 days (approx, bro science calculation) pic.twitter.com/JN9EeBRUPU
— @CryptoChartsJoe (Get Your Money Right) (@CryptoChartsJoe) April 21, 2019
This notion has been echoed by a number of chart analysts who have forecasted a breakdown by the end of the prevailing rising wedge on the four hour chart. GalaxyBTC, a prominent trader on twitter, has called for a correction back to $4,600 before any further moves higher;
Based on this daily fractal we should get another chance to buy $BTC at $4600-$4800 levels before the next run to $6800.
Similarities in both candles and volume. pic.twitter.com/IGivErxz5Q
— Galaxy (@galaxyBTC) April 20, 2019
Bitcoin and Altcoins At Resistance
Almost all crypto assets (apart from Binance Coin) really look to be hitting heavy resistance currently. Markets are currently in the red as Bitcoin retreats from weekly highs at $5,350. Utilizing altcoin market capitalization the ‘CryptoDog’ has recognized a retracement in most of the altcoins while Bitcoin holds just below the major resistance point at $5,400;
$ALTS at resistance, $BTC at resistance pic.twitter.com/ylFHojEpph
— The Crypto Dog (@TheCryptoDog) April 20, 2019
At the time of writing this article, crypto markets had gone down over 2 percent on the day which equated to $4 billion. A lot of this has been lost by altcoins as Bitcoin has lingered at its current level, growing market dominance to nearly 53 percent. This is the highest it has been for many months.
On the week markets are back at the same level which is approximately $177 billion in market cap. The next week will be pivotal for further upsides although all indicators now are suggesting a larger pull back before any real trend reversal can possibly be measured.
Bitcoin volatility remains at a two year low and slow and steady accumulation looks to be propelling market movements right now. This could well go on for the next three months or so if charts reflect markets in previous years.
Image from Shutterstock
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