Two Paths Of A Bitcoin Bull Run, And If A Bear Phase Is Next

Bitcoin price has plummeted more than 50% from recent highs, falling to as low as $30,000 in a matter of a flash. The selloff was enough to shock the entire market, causing the most liquidations and coins to be deposited since Black Thursday.
There’s now talk of the bull run being over, however, there’s potentially two different paths that the cryptocurrency could take according to the RSI and past bull market performance.
Is The Top Of The Crypto Bull Run In?
After more than one full year of an uptrend, the volatile crypto market wiped out months of progress in days. The sharp reversal caused a 50% drop across the board, and it was enough to spook the market.
Related Reading | Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken
Several top signals also appeared, such as the Pi Cycle Top indicator, and the Relative Strength Index reaching overbought levels on the monthly. The monthly RSI, however, has been swatted down by bears and back into the normal range of the oscillator.

The monthly RSI is looking especially bearish | Source: BTCUSD on TradingView.com
There is also a bearish divergence stretching across past bull cycle tops, which could provide clues as to what’s to come.
If bears can close the monthly Relative Strength Index back below overbought levels, then the bull market could be over according to scenario B from 2017. Scenario A, however, shows bull holding the key level, and making another drastic push higher to finish the bull market.
Stormy Bitcoin Forecast Could Lead To Unexpected Scenario
In scenario A, the stock-to-flow model should be proven accurate, and the leading cryptocurrency by market cap will head towards hundreds of thousands of dollars per coin.
But what if the stock-to-flow model, and every major analyst that’s glanced at a Bitcoin chart is dead wrong about expectations, or something catastrophic happens?  It sounds unrealistic, but nothing is guaranteed in markets – not even the success of Bitcoin.
Droves of analysts have produced charts that demonstrate what that path to hundreds of thousands looks like, but what might a devastating collapse look like instead?

Beware of a weak spot in the Ichimoku cloud | Source: BTCUSD on TradingView.com
If a bear market takes place now and with the stock-to-flow model causing expectations to be so high, the short investment horizon of impatient investors could lead to a sharper selloff if BTC isn’t trading at hundreds of thousands before the year’s end.
A bull market failure and failure to produce the results investors are expecting, could cause investors to abandoned the cryptocurrency completely. Unless they’re in it for the tech. Forewarning of such an event, is a weak spot in the monthly Ichimoku cloud.
Related Reading | Lack Of “Capitulation” Volume Suggests Bitcoin Is Doomed To More Downside
The monthly price chart in Bitcoin also is forming a massive bearish wedge taking place across nearly a decade. A breakdown could set the trajectory for passing through the Kumo twist, which is a common setup according to how the indicator itself works.
And while anyone even remotely bullish on Bitcoin would immediately write this off, there’s no denying the cloud twist is there. Bulls also didn’t see the recent crash coming – could they also be blind to this possibility?
Featured image from iStockPhoto, Charts from TradingView.com

Ora Goodwin
Ora Goodwin
I am a well-known and respected author in the cryptocurrency field. I have been writing about Bitcoin and other digital currencies for over 5 years, and my work has appeared in some of the most respected publications in the space. I am also a regular speaker at industry events, and my insights into the crypto market are highly sought after by both media and investors. In addition to my writing and speaking engagements, I am also an active advisor to several blockchain startups, and I sit on the board of directors for the Blockchain Education Network.

Similar Articles

Most Popular

Football lengend David Beckham joins Greed island

On November 5th, the English football superstar David Beckham announced that he would join the Greed Island team, and the whitelist application channel has...

The NFT Project Driving Freedom of Speech in The Metaverse

"Schooling" The Metaverse On Free Speech, Tanked Gil Schoolies NFT's Use Comedy to Fight Cancel Culture With Freedom of Speech Under Attack in and around...

Potential projects to get whitelisted on Solana and Ethereum

The rapid expansion of the NFT sector over the last year has made possible a plethora of innovative new endeavors. The early identification of...

THE Ape-Revolution of the Defi Space

What do you get when you combine game-changing utility, an experienced team in Defi and a frenetic committed community? A monster coin in the...

The Sublimation of Metaverse Experience: Visualization, Multi-scene, Immersion

DID, Metaverse, Immersive Experience, On-chain Visualization, On-chain Interaction In recent years, the "metaverse" has become the new consensus of the global technology giants on the...

Funex Club Announces the Launch of its Upcoming Multi-Chain Decentralized Crypto Wallet – Funex Pro

VILNIUS, LITHUANIA / ACCESSWIRE / October 17, 2022 / After the successful launches and presale programs of its native currency, i.e., Funex Coin - Funex Club is...

NuriFlex successfully completed 1st round of NuriTopia $NBLU token private sales

VANCOUVER, British Columbia -- NuriFlex Holdings Inc. (www.nuri.ca, “NuriFlex”) announced that it has successfully completed 1st round of $NBLU token private sales. $NBLU token...

Bowled.Io To Build A Multilateral Community In Partnership With Prominent Web3 Ecosystem Players

Gaming is the fastest-growing entertainment industry in India. The number of online gamers in India has nearly doubled to 510 million from 269 million...