Bitcoin has been facing some short term bearish action, however, 2019 has been a great year for the digital asset. Bitcoin was trading at around $3700 at the beginning of 2019 and slowly crashed down to a low of $3349 before a huge bull run that started a week after.
Bitcoin had an impressive 300% price increase in just 5 months. The digital asset peaked at $13970 (on Binance) and started consolidating. Bitcoin formed an Equilibrium pattern that eventually broke bearish and extended the consolidation a bit further.
Bitcoin crashed down to $6515 a few days ago but even that price is still almost twice as big as the lowest in 2019. Analysts seem to be ignoring this fact. It’s true that Bitcoin is currently in a daily and weekly downtrends, however, the monthly chart is still in favor of the bulls which are looking to set a higher low.
The trading volume is also really important here as the bulls have seen a significant increase in volume, something that the bears haven’t. In fact, the monthly chart is still almost a bull flag at this point.
The bulls are obviously looking to change the daily trend first and then focus on the weekly chart in order to confirm a higher low on the monthly chart. If they manage to keep up the momentum gained from the recent bounce, they could change the daily trend within the next week.
It’s also important to remember that Bitcoin halving is approaching quickly and history has shown that this event is extremely beneficial for Bitcoin.