Bitcoin’s price recently plunged below $10,000 USD. As the market remains volatile, an interesting comparison between the 2019 cycle with the 2016 one shows that Bitcoin might be ahead of another massive price spike. As per the author of the video, Faisal Sohail who has a Ph.D. in economics, Bitcoin’s technical analysis at the moment resembles strongly the one from 3 years ago after which the most popular cryptocurrency experienced its biggest bull run yet during the following year.
Bitcoin History Lesson
Bitcoin’s weekly chart clearly shows that the price is finding support on the 20 EMA, the RSI is over 55, and the first red candle in the MACD has occurred with a bearish MACD cross. Approximately during the same months (July-August-September) back in 2016, the signs were very similar to today’s chart. The support level of the EMA was just above 20, the RSI at 52, a bearish MACD cross with the first red candle. The video analysis emphasizes on both years being bullish ahead of these corrections. Shortly after the 2016 correction followed the bull run continued firmly, resulting in the all-time high of $20.000 USD.
The analysis continues with positive predictions about Bitcoin’s future. If history is any indicator, Bitcoin’s all-time high will be surpassed easily in the following years. The author finished robustly by adding: “Don’t get manipulated, this might be the best chance to load more on dips”.
A quick comparison video of $BTC in 2016 and 2019.
The similarity is MIND-BLOWING!! 🔥
— Faisal Sohail 🏝️🤘 (@oddgems) August 30, 2019
What’s to Come for Bitcoin?
As CryptoPotato reported a few weeks ago, 2020 may be the best year in Bitcoin’s history. Several important factors like the Halving in May, mass-adoption, and scarcity, Bitcoin’s future appears to be on the rise when the fundamentals are in check.
However, a more recent analogy is worth showing as well. While the 2016 comparison appears to be very bullish for Bitcoin, another one from 2018 may bring the bears back in town. A descending triangle pattern which appears now strongly resembles one from last year which dragged the price down from $6000 to $3120 and Bitcoin may be heading to $6000 now.