The poster boy for cryptocurrency markets, Bitcoin, has suffered significantly in 2018. The charts reveal that the digital token did succeed to break out of the cup and handle pattern crossing past $4,200 but gave up shortly later. Through the festive season, neither the bulls nor the bears were eager to take control and dictate the direction of the markets.
The Market is Preparing for a Major Breakout
The crypto markets have been sliding from the December 2017 all-time highs throughout 2018. However, the latest most significant plunge happened in mid-November 2018 taking Bitcoin below 15-month lows at some point. Trend analyses on the weekly charts reveal that this market is preparing for a major breakout.
All tools and indicators suggest that the next breakout will be powerful. The cryptocurrency has an 80% chance of sliding further and only 20% probability of rising. 2018 was hit by a persistent bear market that has seen bitcoin lose over 75% from its peak now trading below $3,900.
Currently, consolidation is the way to usher in the New Year with the coin trading within a 3% range for the day after a thinly traded weekend. Looking at the charts, the BTC price is well supported by the $3,600 price. It has constantly tested $3,900 resistance levels which it is yet to break. If it clears the resistance at this level and the other pegged around $4,000 the cryptocurrency will be poised for more gains.
Although the recent slide found support at 21 days SMA around $3,576, the largest cryptocurrency rose again slightly. The year-end trading seems calm with the bulls and bears ‘sleeping’ waiting to renew their rivalry in the New Year. Bitcoin seems to be currently consolidating awaiting a major movement that will take the entire crypto markets by storm.
The weekly support and resistance trend lines have converged. Although analysts and experts state that the world’s biggest crypto by market capitalization is currently consolidating, indicators portray the situation as the ‘calm before a storm.’ Whichever direction bitcoin takes, 2019 is shaping up to be an exciting year for the crypto world.
Congratulation for everyone who survived this messed up years. If you are still with us – your hands are far from weak. Happy gains in 2019!