Avoiding a 2019-Style Fakeout: Bitcoin’s Healthy Long-Term Indicators
A well-known Bitcoin trader predicts that the cryptocurrency will not experience a fakeout rally similar to what happened in 2019 during the current market cycle. According to the trader, the 2019 fakeout rally occurred when Bitcoin broke out of the “buy zone” after only spending a few months in it. The “buy zone” is the trader’s own version of logarithmic growth curves (LGC) that filter out short-term volatility and noise. However, this time around, Bitcoin has already spent over a year in the “buy zone,” which sets the stage for a sustained bull rally.
The trader also uses the monthly moving average convergence divergence (MACD), a momentum indicator, to support his thesis. He believes that even though BTC is currently in bearish territory, a bullish reversal could be on the horizon as the MACD line approaches the zero line from above.
The trader also emphasizes that his LGC model has been a reliable indicator of Bitcoin’s price action. He states that since 2018, the LGC model has accurately projected price ranges and predicted optimal buying times.
Looking ahead, the trader previously forecasted a bull rally for Bitcoin in 2024. Currently, Bitcoin is trading at $26,413 with a 0.8% increase in the past 24 hours.
Hot Take: Bitcoin’s Long-Term Outlook
This analysis suggests that Bitcoin is unlikely to experience a fakeout rally similar to what happened in 2019. With Bitcoin already spending more than a year in the “buy zone” and the MACD indicator showing potential for a bullish reversal, the stage is set for a sustained bull rally. The trader’s LGC model has proven to be a reliable indicator of Bitcoin’s price action, accurately projecting price ranges and optimal buying times. While Bitcoin is currently in bearish territory, the long-term indicators point towards positive momentum. Keep an eye on Bitcoin’s performance as it continues to evolve in the market.
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