Looking at the , we can see that Bitcoin has begun to to form an . Two touches of the bottom , and two tests of the overhead resistance at $4,250. A breakout of this formation should lead to a rally to $5,200, which coincidentally lines up with the downtrend line that has been formed since $20,000 AND the 0.618 . Bitcoin has shown much harmony with the 0.618 fib level throughout its lifespan. We can also see on the chart, that the 50 and 100 day moving averages are set for a "Golden Cross", a favorite technical buy indicator among investors and traders. If we take a look at the snapshot below, we can see that Bitcoin has found STRONG support on the 200 week moving average. This is one of the most important indications that the bear market has ended. Why you ask? Well, if we look at the 2014 bear market, Bitcoin found its bottom on the 200 week moving average. That is where the tide turned, and that is where the run up to $20,000 began.
. However, there was a catalyst that propelled Bitcoin to the extreme highs of $20,000 in December of 2017. The hype and positive news surrounding the entire industry was astounding. New tech, ICOs, real world partnerships, and exchanges with fresh ideas. People were selling everything, taking out loans, and taking out mortgages on their homes, just to buy into the mega bull Bitcoin . Will we ever see these kind of prices again? The question remains. No doubt, cryptocurrency will need a new catalyst to propel Bitcoin and altcoins to new heights.
This analysis has been a positive outlook on the future of bitcoin , especially this upcoming mid term. There are many perma bears that will tell you that Bitcoin is dead, and we're heading to $0. Perma bears are perma bears for a reason, as they are most likely individuals who got burned buying into the crypto mega hype of 2017. And there's many of them. With no real news coming out, I wanted to spread a positive outlook into current market conditions. As a close friend and business associate once told me, "thoughts become things."