Earlier this month, the one-week Bitcoin chart printed an extremely bullish sign: the golden cross of the 50-week and 100-week simple moving averages, with the former crossing above the latter. (As an aside, a golden cross is when a short-term moving average crosses over a long-term one to imply bulls have control.)
While this is a decidedly bullish sign in the long term, with this signal preceding the 1,000%+ rally seen between 2016 and the end of 2017, a number of leading analysts have remarked that Bitcoin is still susceptible to one final downturn before an eventual return to the macro uptrend.
Bitcoin Poised to Return to $5,000 Before Breakout
Former Wall Street trader turned Bitcoin analyst Tone Vays recently sat down with BlockTV, an industry media outlet, to talk his price outlook for the cryptocurrency market heading into 2020.
While Vays has started to show signs of optimism, he remarked that he still expects for BTC to see the “next low to come in [during] the first quarter of 2020.” As to where this low in the cryptocurrency market will come in, the long-time cryptocurrency trader looked to the $5,000s, claiming that there’s a high probability Bitcoin will enter that range to put in a fresh low.
While the trader is currently short-term bearish, he remarked in another interview with BlockTV that he thinks Bitcoin could hit $50,000 by 2023.
Vays Isn’t Alone In Saying So
It isn’t only Vays that is eyeing the $5,000s as a potential final bottom for Bitcoin before a return to a bull phase.
CryptoBirb, a strong proponent of the positive effects the aforementioned golden cross will have, recently noted that Bitcoin still has the potential to see one final dump to $5,400-$5,600 — 23% lower than the current price of $7,150. This coincides with the long-term 0.786 Fibonacci Retracement level.
This was echoed nearly exactly by both BitcoinEconomics and Jacob Canfield, who recently looked to the sentiment that BTC is likely going to see one more shakeout prior to a return to the bull trend.
There’s also a simple observation from trader Mac, who remarked that the low-$5,000s will be a macro bottom for Bitcoin due to a confluence of technical levels in that region: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.