The Hidden Bitcoin Trend Line That Could Save The Bull Run

Share This Post

Today, Bitcoin price sank below $40,000 for the first time since September – a price more than 50% lower than what the market was anticipating this time of year.

While the downside has been impossible to ignore, the latest sweep of lows has resulted in a touch of a trend line dating back to the bear market bottom that could keep the bull market intact a bit longer.

Technical Analysis And Framing The Importance Of Trend Lines

When it comes to technical analysis in Bitcoin, trend lines always matter. When such lines hold, it is a sign to the market that it is time to reverse. When they give way, the resulting breakdown and panic is usually dramatic.

For example, losing the horizontal support line of $6,000 in late 2018 immediately resulted in a plunge to $3,000. Once there, the bear market bottom was put in.

Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End

It was beginning at that initial bounce that restored hope in Bitcoin, that yet another trend line started. Rather than a trend line drawn across price peaks or troughs, this trend line is drawn across extreme oversold readings on the daily Relative Strength Index.

A long-term RSI trend line could cause a bounce | Source: BTCUSD on
Now Or Never: Bitcoin Bull Run RSI Trend Line Must Hold

As Bitcoin price swept below $40,000 on BTCUSD daily charts, the Relative Strength Index tapped a long-term trend line. The line itself has withstood the bear market bottom, Black Thursday, and the 2021 selloff down to $28K.

Does this latest move down have enough momentum to break through the support line? Or will it hold once again? The reading alone on the RSI suggests conditions are highly oversold – the fourth most extreme since the bear market bottom.

Fourth time is the charm? | Source: BTCUSD on

During the last bull market, there were four total touches of the daily RSI trend line. The fourth was the final touch before the peak of the bull market (green dotted line).

Related Reading | Blast From The Past Bitcoin Fractal Could Suggest A Record Reversal Is Near

The same trend line, once breached, is what led to Bitcoin falling sharply from $20K to under $6,000 in less than one month in early 2018 and kicked off the bear market (red dotted line).

Bitcoin is once again at the trend line. Will the fourth tap prepare the market for liftoff, or will the line break down and a new bear phase begin? It could be now or never for Bitcoin bulls.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from

Read Entire Article

Related Posts

Lost Treasure Found? Bitcoin Miner Transfers Over $3 Million BTC After 14-Year Dormancy

According to the on-chain analysis platform Lookonchian, a long-dormant Bitcoin (BTC) wallet dating back to April 2010, recently transferred 50 BTC, equivalent to $3328 million Related Reading:

Bitcoin’s weekend dip shakes out short-term holders

Bitcoin saw a significant dip over the weekend, with BTC dropping from $70,090 on April 11 to $64,400 on April 13 Despite the initial fears of a broader conflict in the Middle East developing and a

HSBC to Expand Tokenized Asset Offerings — CEO Says He’s ‘Very Comfortable’ With Tokenization

Hong Kong’s leading commercial bank, HSBC, continues to invest in its tokenization product lineup The bank’s CEO, Noel Quinn, stated that he is “very comfortable with the concept of

Trust Wallet Advises Apple Users to Disable Imessage Amid Fears of Zero-Day Exploit

Trust Wallet, a crypto wallet provider, has issued a warning for Apple users to disable Imessage, based on “credible intel” about a zero-day exploit available on the dark web for $2

New UK Legislation To Govern Crypto Staking, Trading, By Mid-2024: What You Need To Know

The United Kingdom is poised to enact new legislation covering stablecoins and various crypto activities, including staking, trading, and custody  The forthcoming regulations, which are expected to

Bitcoin Whales Showing Different Behavior From Past Cycles, But Why?

On-chain data suggests the Bitcoin whales have been showing different behavior regarding exchange inflows from the last cycle Here’s why this may be so Bitcoin Whales Are Showing Different
- Advertisement -spot_img