The recent bullish outpour which traders had long anticipated and more significantly expected to stay long-term was swiftly invaded by the bears a few days ago. Since then, the cryptocurrency market has lost well over $7 billion in this very short period of time. However, the current state of the market reflects that the bears are loosening its grip on the majority of the cryptocurrencies.
More precisely, out of the 100 cryptocurrencies listed on coinmarketcap, only 25 tokens/coins are recording losses. Thankfully, this excludes BTC which had dropped by more than 5% yesterday. But despite this, Bitcoin is only up by 0.05%, a percentage that has left the big bull dangling on $3,845 at press time. And although BTC has lost $5 billion since the past two days, the possibilities of BTC taking a bullish turn and breaking out to $4000 is still highly certain for a very significant reason.
Why Bitcoin will hit $4000 sooner than later
A quick look at the bullish outpour from when it began on the 19th of February 2019 when BTC hit a 2019 all-time high of $4,010 and progressed to hit $4,210 on the 24th of February, after which BTC slipped to $3793.71 to now trade at $3843.96 shows that the Bitcoin made a new bearish crossover, one that was last seen five years ago.
Yesterday, Bitcoin’s moving average (MA) of over 50 weeks had dipped lower than BTC’s 100-week moving average. And although traders are paying attention to BTC’s instability in trading price, the change in MA might be the catalyst for BTC’s next bull run as previous data have consistently shown that a long term bullish rally is likely to occur with every crossover in MA as this indicates the close of a bearish outpour.
This is to mean that BTC has just made a correction in market movement, one that suggests that BTC’s downfall from $20000 to $3842 at press time is a 1 year bearish run that is usually reflected to have come to a close with every crossover in BTCs MA.
Conclusively, traders are to expect a bull run in the coming months. Meanwhile, seeing that BTC is only $158 away from $4000, a slight increase in trading volume will push the big bull back up and most likely set it out for $4000.