As the conflicts between the United States and Iran worsen, bitcoin bulls appear to have reawakened. Over the last few days, the digital asset has obliterated most of the key resistance levels as the upward momentum looks set to continue.
Veteran commodities trader and chartist Peter Brandt believes bitcoin has already entered a fresh bull market. Brandt became popular after making an eerily accurate prediction about the 2017 bull run that saw bitcoin skyrocket to $20,000 followed by the 2018 crypto winter. He recently took to Twitter to explain why he thinks the BTC bull market might have started. He, however, noted that there is one key condition that must be fulfilled before a full-blown BTC bull market kicks in.
Three Technical Indicators That Favor The Bulls
In a tweet on January 8, 2020, Brandt gave three major scenarios that might suggest the bull market has begun.
#1:Bitcoin’s multi-year support has held strong
Despite the bearishness that has prevailed in the crypto market, bitcoin’s multi-year support has held strong. In the last couple of months, the king crypto has touched this support multiple times but it has remained impenetrable for the bears.
Furthermore, bitcoin recovered from $6,800 lows as bulls fuelled a 24% recovery. Since then, the BTC price has accumulated more than $1650 to hit as high as $8,450.
#2. The head-and-shoulders pattern on the daily chart
The head-and-shoulders formation is one of the most reliable patterns for the technical analysis of cryptocurrencies. A closer look at bitcoin’s chart shows that a head and shoulders (H&S) formation was in play since November 2019. The recent surge to $8.400 saw the successful completion of this pattern.
#3. Penetration above the descending channel
Today, bitcoin price continued its rally past $8,000 then pushed above the 200-day moving average. This big move by the bulls also brought the flagship cryptocurrency above the bearish descending channel which formed in June.
Captioning supporting charts, Brandt tweeted:
One Twitter user commented that he thinks it is still early for a new bull market to begin given that most bitcoin investors are awaiting a major downward correction before a colossal spike. Brandt disagreed, quipping that “if there are many waiting, then they may wait forever.”
While bitcoin has slightly corrected to $8,351.95 at press time, the top crypto remains well-positioned for more upsides. The above mentioned technical indicators highly favor the bulls. We hope to see bitcoin break above $8,500 first, then $9,000 over the coming days.
Shaking Out Enough “Cryptocultists” Further Proves The Bull Case
Even though the first three conditions have already been met, Brandt noted that enough cryptocultists must first be purged before a bull market can be fully confirmed.
This point about shaking out cryptocultists seems to be a reiteration of the tweets that Brandt shared in late-November 2019 where he suggested that a full-fledged bull market would only occur after most of the bulls have been shaken out. He went ahead to say that bitcoin would blow past $50,000 once this happened.