A Bitcoin bull run could be on the cards after Bitcoin did what it has been promising to do for several weeks and finally burst through the $10,000 barrier, taking out the two-and-a-half-year downtrend as it did so. Having knocked at the door numerous times this year, the market leader has finally broken through the psychological $10,000 barrier, setting the stage for the next Bitcoin bull run – if it can see out the week.
Bitcoin Blasts Two and a Half Year Downtrend
It has been clear for some time that Bitcoin has been on the verge of a huge move, having tried to break the long term downtrend on eight occasions in the last month alone. Each time it was rejected, and each time it bounced back to try again. This is a sign of a buoyant market that simply cannot be kept down. And so it proved, with Bitcoin racing from $9,557 to $10,430 in the space of four hours, a 9% move that took out both $10,000 and the long-term trendline, settling back to around $10,100:
The significance of overturning the long term trendline cannot be overstated. The trendline is taken from December 18, 2017, shortly after Bitcoin hit its all-time high of $19,800, and tracks the mini-run of June and July last year, which ultimately got knocked back:
Tracking the price action from the past 12 months however, it is clear that Bitcoin’s bear market was coming to and end, and that it was only a matter of time before it finally broke back upwards:
Is a Bitcoin Bull Run a Certainty?
So with Bitcoin having pushed through these twin barriers, what can we expect now? Perhaps obviously, it is crucial that Bitcoin stays above the long term trendline. Some pullback is expected, although not guaranteed, but as long as Bitcoin can stay above $9,800 by the end of the week then we can be fairly confident that a new Bitcoin bull run has begun. We would expect some fluctuation around the $10,000-$10,400 mark before a bigger upward pattern establishes itself.
If Bitcoin did slip back underneath the trendline on a weekly level however then all is not lost. We could well see a pullback to the $8,800s again before Bitcoin has another go, but each time the long term trendline level is getting lower, making it easier to break through.
Whichever way you slice it, it’s clear that this move is a big one on two fronts and could well end up being the day that we can look back and say ‘that’s where the Bitcoin bull run started’.
