Table of Contents
A lot of traders are now believing that Bitcoin has seen its Glory Days, and we can have no new bull run that lasts for months on end like we used to.
However, this belief is very far-fetched, and I can prove it to you.
- Yes Bitcoin is down more than -50% from its ATHs
- Yes we have been bearish or trading sideways for more than 10 months now
- Yes Bitcoin is still going down and might remain bearish for a while longer
But all that changes nothing! And you will find out why in this Bitcoin analysis. You will also find out why we believe institutional traders are trying to shake out weak hands and why we might be coming to the end of this type of market condition soon.
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The Bitcoin Larger Picture
While it might seem that we have been in this bearish sell-off for so long, it is important to note that Bitcoin is still in a larger bullish trend! And what we are experiencing right now is the bullish retracement in price before the rally continues.
We have seen this type of price action happen over and over again in all types of asset classes all around the world and Bitcoin will be no different.
Ok, now you are getting convinced that we might still be in a bullish market, your next question might be ‘Why is it taking so long?’.
Well, it is important to understand that we are dealing with a Daily timeframe analysis (i.e: it takes a day for one candle to form).
And when you combine that with the attributes of price retracement we listed below, you will have a better understanding of why it is taking so long to complete and resume buying again.
If We Are Still Bullish, Then Why Is It Taking So Long To Resume Buying?
Well, the key characteristics of a retracement are:
- The price movement is slow
- Very Sluggish
- And retraces the bullish move with less momentum
All these criteria are currently being met on the Bitcoin Daily Chart. This movement down is slow and has lasted for more than 10 months now retracing only -57%.
During the bull run of last year, that same 10 months timeframe was all it took for Bitcoin to surge more than +900%.
Ok, But When Will This Horrible Market End?
That is where key technical analysis skills come into play. And we can tell you a little secret from experience and past studies.
The secret is: At this Bitcoin key level, there are only two main kinds of retracement patterns that might form in the Daily price chart.
- The Flat Pattern
- The Triangle Pattern
We will be breaking down these two patterns, how to spot them, and what the institutional traders are doing to get ready in our next article The Future Of Bitcoin! This Flat Pattern Predicts A Bull Run
But for this article, I can tell you this. If Bitcoin is forming a Flat Pattern, you need to sit up and get ready faster, because this bearish market might be over faster than anyone expected.
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