Guest post by the Italian YouTuber Andrew Bit who will present his review of Bitcoin in 2019, explaining also what can be expected for the new year.
2019 has been an incredible year for bitcoin.
After landing in the $3,000 area during the last months of 2018, the first months of the year served as a catalyst for the bull run that brought it to a high of $13,831.
Currently in the $7000 area, on November 25th the price traced an important low swing by touching the historic 6500 support without breaking it.
The hesitant reaction of the price caused it to stop near the $7800 without allowing a recovery of the $8,000, a significant level for bitcoin.
In the last few hours, a predicted double bottom (area 6500/6400$) has allowed the price to (almost) retest the 7,500 without being able to recover it, a sign that the bears are still in control.
But are the bulls really out of the game?
Precisely the $7,500 (closing above the resistance on a daily timeframe) represent the anchor to restart a game which to date has appeared to favour the bears. And the heart of the matter is precisely this.
The problem lies only in managing in the best way the short and medium-term where the price could suffer some more or less pronounced movements.
So, what is the area to observe for a possible long-term entry?
The eyes of all (traders and investors) are on the 200W MA (moving average of the 200 periods over a weekly time span) currently close to $5,000, where there is also the support from which the second boost originated during the summer bull run.
It is worth noting that in its entire history, bitcoin has never closed below this moving average which has always represented an impassable wall for the Bears.
Although at the moment we are apparently far away, the target remains of importance and only in case of contact will we know if history will repeat itself or not.
Bitcoin has always surprised us with its unexpected moves and even this time it will not follow the path that everyone expects.
In this scenario, the altcoins are not showing important signs of recovery (with a few rare exceptions like Tezos).
Ethereum, which has always driven the alt season, is struggling to outperform bitcoin, revealing instead a rising correlation matrix (>90%), a factor that at the moment points to a potentially bearish scenario also for the queen of altcoins.