Bitcoin worth is at a vital juncture, the place a deeper drop from present ranges may ship the first-ever cryptocurrency again right into a downtrend, or a climb from right here may ship it in direction of a brand new all-time excessive.
All that’s left that’s holding up Bitcoin from falling again right into a devastating downtrend, is one easy line separating the bear market from the bull market.
Herculean Activity: This One Line Is Holding Up Bitcoin’s Bull Market
Traces are psychologically vital. Although you can’t see them, strains separate city and nation borders, or strains drawn within the sand symbolize a closing stand earlier than retaliation.
In technical evaluation, strains maintain traits or worth motion supported or at bay.
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May it actually be that only one line is holding up Bitcoin’s bull market, retaining the main cryptocurrency by market cap from dropping again right into a bear development?
In accordance with the Relative Energy Index on weekly timeframes on Bitcoin worth charts, only one line is stopping the main crypto asset by market cap from falling again into bearish territory.
Wanting again, Bitcoin worth first fell below this clearly vital line in January 2018, simply because the crypto asset’s parabolic advance had been breached.
With every subsequent peak through the bear market, the cryptocurrency didn’t even come near touching the road.
However following Bitcoin’s bear market backside in December 2018, it constructed up sufficient momentum from its bullish base to surge into one other parabolic rally, taking the worth of the cryptocurrency to $14,000 at its excessive.
On the way in which up, Bitcoin worth broke again above the road drawn on the RSI, but it surely couldn’t maintain.
Come September 2019, nevertheless, simply after the Bakkt buying and selling desk launched, Bitcoin collapsed by over $2,000, sending it again right into a short-lived downtrend that lasted six months. This vital line was damaged in consequence.
The historic October pump that set a report for Bitcoin’s third-largest single-day acquire on report, couldn’t even break again above this highly effective line drawn on the RSI.
A rejection from that stage in October took Bitcoin to its native downtrend backside of $6,400.
For the reason that low was set, Bitcoin worth has rallied over 60% to a 2020 excessive of $10,500, earlier than falling again to present ranges round $9,350.
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The latest pullback has taken Bitcoin proper to that ever-important line, the place to date the cryptocurrency has but to breach by it.
If it holds, Bitcoin worth is nearly sure to remain in bull territory for an prolonged interval – doubtlessly not falling again into bear territory till a brand new all-time excessive is about.
But when that line can not maintain, a brand new all-time excessive could also be rather a lot longer away.
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