Even an increase to $ 9,000 won’t be enough to get Bitcoin out of its current bearish pattern. A popular analyst has now expressed this view.
Despite a positive start to 2019, the leading digital currency spent the second half of 2019 in a continuing downward trend. After the rally brought Bitcoin price up to nearly $ 14,000 in the first half of the year, BTC has set a number of lower highs in recent months.
According to a generally recognized market analysis, this is the defining characteristic of a bear market.
Bitcoin and higher highs
As cryptoanalyst MAGIC (@MagicPoopCannon) emphasizes on Twitter: Bitcoin has to set a higher high to reverse the current trend. The last major high of around $ 9,600 was reached on October 27, at the same time as news that the Chinese government supports the use and development of blockchain technology.
The optimism that the news would likely have a positive impact on the Bitcoin and cryptocurrency industry was short-lived. In the following weeks, several companies in the country were closed by the government, and the accounts of prominent crypto personalities were blocked on social media platforms.
Likewise, the Bakkt futures platform – surrounded by enormous hype before the market launch – only seems to be another way for accredited investors to speculate on the Bitcoin market without holding the asset itself.
Most of the steadily increasing trading volume on the platform is accounted for by the monthly futures market with cash settlement and not by the daily, physically settled contracts. In terms of bullish news, the end of 2019 is rather unsatisfactory.
More blood, more losses?
For MAGIC, an upward trend without moving above the previous high is nothing more than a short-term recovery within a larger bear market. The analyst therefore predicts another downward trend.
MAGIC’s outlook is bleak, but other analysts are even predicting a low below $ 6,700. In the meantime, other indicators suggest that the November dive below $ 7,000 was the ultimate low in this declining phase and that the price will continue into the year of halving.