Bitcoin Positioned to Revisit $5k Prior to Uptrend
In the early days of December 2019, the one-week chart of BTC revealed an outrageous bullish sign. That is, the 50-week SMA crossed the 100-week SMA and it is known as a golden cross. A golden cross means that buyers are in charge.
The same golden cross signal appeared prior to the over 1000 percent upsurge that ensued between 2016 and 2017. Despite the long term bullish signal, some renowned analysts have highlighted the susceptibility of BTC to a last move to the downside prior to an ultimate return to the macro uptrend.
According to Tone Vays in an interview with BlockTV in recent times, Bitcoin should attain its immediate low during the first quarter of the coming year. He noted that this low in the crypto market will come in around the $5,000s.
At the moment, Vays maintains a short-term bearish outlook but noted in another interview with BlockTV that BTC may reach $50k by 2023.
#WEEKINREVIEW: "I think we could have a little bit of a rally into the close, but I'm not really expecting anything above $8,000 any time soon. I'm looking for the next low to come in in the first quarter of 2020." – @ToneVays.
— BLOCKTV (@BLOCKTVnews) December 27, 2019
Aside Vays, other analysts are likewise looking at the $5,000s as a likely eventual bottom for BTC prior to a return to a bull phase.
CryptoBirb strongly believes that the golden cross will have positive effects on the crypto markets. According to him in recent times, it is still possible for BTC to see an eventual decline to $5400-$5,600.
the golden cross is here for 2020 but it still might dive 5.4-5.6k (0.786 Fib), unless we start closing weekly 8k+
I wouldn't mind cheap ₿₿₿ for Christmas personally🎅🎁
Decembers have almost always provided us with extremes and pivots. U ready for when it comes? pic.twitter.com/XFk6ORaZbH
— Crypto₿irb (@crypto_birb) December 14, 2019
Besides, BitcoinEconomics and Jacob Canfield in recent times considered the sentiment that BTC could experience another shakeout before the emergence of the bull trend.
BTC going down to $5500 in Q1 2020 seems a likely scenario. It may even touch $8k before that. More shakeout and accumulation before a sustained and slower upward trend is likely.
A few people predicted such a second smaller "bear market" in the first half of 2019. https://t.co/s9Px4SgUGr
— BitcoinEconomics.io (@BitcoinEcon) December 21, 2019
What price do you guys have for the bottom on this #bitcoin downtrend?
I think we could see $5500 personally as it is the 78.6% from the swing low to swing high, but we may see a bounce or two in between here and there. pic.twitter.com/2TSK8XhecH
— Jacob Canfield (@JacobCanfield) December 17, 2019
Likewise, trader Mac commented that the low $5ks will be a macro bottom for BTC because of the gathering of technical levels in that region.