In our 7 must-read cryptocurrency predictions 2020 as well as our Bitcoin price forecast 2020 we said to be convinced that the grand crypto bull market is set to continue. Admittedly, things may be choppy in the short to medium term. But directionally the crypto market will move higher, especially the largest cryptocurrencies like BTC and XRP.
If we carefully look at the Bitcoin chart, the leading indicator for the crypto market, we see an increasing number of signs of a bottoming process.
Now the word bottom is one of the most mis-used words, especially with the proliferation of social financial media.
When we use the word ‘bottom’ we tend to mean the end of a retracement period, either a tactical or a secular retracement. In other words, a reversal is in the making.
In the case of Bitcoin we have been working with the daily chart. However, when we apply the Fibonacci retracement technique to the monthly chart in order to find ‘the bottom of a retracement’ (or in other words the confirmation of a reversal) we might see have some very interesting news for crypto investors.
The recent sell off stopped exactly at 6666 USD. On the monthly chart, working with monthly closing prices, the Fibonacci retracement level that coincides with 6666 USED is the 61.8%. More interestingly, prices currently are set to close this month at the 50% retracement level.
All this obviously will only be accurate if our approach of monthly closing prices is a valid approach. We will track this closely, and report back to our followers both in the public domain in our crypto news category (high level conclusions) as well as our premium crypto members (very detailed findings made actionable).