The 2019 bull market recorded a remarkable momentum in the crypto space, shooting up Bitcoin’s price by 350% from the 2018 low at $3200 and at the same time, bringing the top crypto projects out of their red zones; except Ripple’s XRP which has shown a poor performance since the beginning of the year.
On top of that, Bitcoin is apparently bullish if we consider the price movement for this year compared to the last year scenario, which was ugly.
Recently, the entire crypto market slightly fell due to Bitcoin’s major correction, which is now holding $9000 as critical technical support along with minor support at $10000.
For about three days now, Bitcoin has managed to trade above the $10000 after attempting to dump; instead, the price witnessed an upsurge to $10375 during the US session today. As Bitcoin continues long, the $10000 zone gets stronger with massive liquidity flowing into the market.
Based on some analysts’ opinion, Bitcoin is predicted to hit $30000 by the end of the year if the price can surpass the current high ($13880). While others believed that the price of Bitcoin may still roll back to the April 2 surge level at $6500, especially if the price can break below the holding $9000 support. At the time of writing, the Bitcoin is trading at $10345 with a market cap valuation of $185.7 billion.
A veteran crypto analyst Thomas Lee tweeted yesterday, making an unpopular opinion on Bitcoin price,
“Bitcoin won’t make a new high until the S&P 500 makes a new high.”
Lee believes that cryptocurrency and indices market are in correlation considering Bitcoin and S&P 500 price movement over the past years.
He added that,
“since 2019, the best year for Bitcoin is when the S&P 500 is greater by 15%”
The crypto analyst supported his opinion with a chart which shows the comparative return of Bitcoin and S&P 500 since 2010 as well as their annual performances based on percentage.
According to the chart reading, the S&P 500 has surged more than 15% since the 2019 YTD, which correspond with the Bitcoin’s price gain of 300% so far this year. Additionally, he also opined that Bitcoin is in a range-bound because of the macro trendless, which confirmed that the Bitcoin Misery Index has fallen from 66 to 50 as of his tweets.
Having said that, Bitcoin appeared to be in a range-bound, if we consider the descending triangle pattern which has been forming since the mid-year bearish correction started. The market has been making a ‘lower high’ on a monthly chart starting from June $13880 high, followed by $13200 in July and $12325 in August.
The September high is likely to surface at around $11600 and all the way to $10950 and $9100 in the coming month before breaking out from a tight range. Meanwhile, the lower low for Bitcoin has remained flat at $9000 price level. If the price can complete this pattern as stated above, the next rally for Bitcoin will come towards the end of the year.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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