Bitcoin Loses Crucial Support Never Broken During Last Bull Run

With Bitcoin price falling to the low $40,000 range, debate has picked up on if the once trending cryptocurrency’s bull run is now over. There’s no truly telling for sure, however, this time is very different than the last bull market.
Why? Because Bitcoin price just lost a key level that never once saw a weekly close below during the last market cycle. Could this be it for the bullish impulse – long before predictions of $100,000 or more per coin are ever reached?
Crypto Cycle Could Conclude With Key Level Lost From Past Trends
Cryptocurrencies are a highly speculative asset class, regardless if adoption is picking up or not. Sure PayPal is now game, as is Visa and an assortment of others, but the volatile assets have a long road of price discovery ahead.
Although most recent crypto participants only have known “always up” as the direction of the trend, things have recently taken a turn downward.

BTC has lost the middle Bollinger Band or 20-week SMA  | Source: BTCUSD on TradingView.com
But is this “the top?” It’s hard to say. One thing for certain, however, is that Bitcoin price has now lost the middle Bollinger Band – also the 20-week SMA.
Passing through the mid-BB in and of itself can be a powerful buy or sell signal.
Related Reading | Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here
However, the fact that during the last bull run Bitcoin weekly never closed below it, it could be a sign that the structure of the bull market has been broken. 
Never once was there a meaningful weekly close below the mid-BB  | Source: BTCUSD on TradingView.com
Will Bitcoin Price Snap Back Into A Bull Phase? What To Look For
The Bollinger Bands are a tool created by legendary trader John Bollinger. The tool has a variety of uses, namely measuring the volatility in the price action of assets like Bitcoin.
The technical analysis indicator consists of a 20-session SMA as mentioned, and two standard deviations of that moving average that widen and contract based on volatility.
When they tighten or “squeeze” it can be a sign a massive move is coming. These large moves can begin or continue a trend after a long pause.
The recent peak has more similarities with 2018 and 2019 than 2017  | Source: BTCUSD on TradingView.com
Bitcoin weekly timeframes have tightened during the recent consolidation phase, and a breakout has started. However, the direction appears to be down according to the middle-Bollinger Band. Passing through the middle-band typically results in several touches of the bottom band to find support.
Like last major “tops” the bottom bands widened to extremes, but when they began to tighten back up, the trend was over. A rounding of the top bands also is a sign of the tools suggesting a break in the bull run.
Related Reading | All About The Bollinger Bands
As for when Bitcoin is ready to turn bullish again, it could be worth waiting for the cryptocurrency to reclaim the middle-BB, which outside of Black Thursday and now, have always been a sign of a bull rally in the making.
With Bitcoin now below the key level, the case for a bear phase, however, is now just as strong.
Featured image from iStockPhotos, 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

Invest Early in Mallconomy: The Future of Retail is Here

E-commerce—more specifically, online shopping—is the undisputed future of retail. Meanwhile, in the Web3 arena, one project that just announced the start of its initial...

Invest Early in Mallconomy: The Future of Retail is Here

E-commerce—more specifically, online shopping—is the undisputed future of retail. Meanwhile, in the Web3 arena, one project that just announced the start of its initial...

Lyber IDO Concludes, Paving the Way for Digital Asset Innovation in Europe

Lyber is celebrating the successful completion of its IDO, a significant milestone underscored by robust community support and a clear demand for innovative blockchain...

Egochain IDO Concludes, Paving The Way to Revolutionize the EV Industry With Blockchain Technology

Supported by strong community enthusiasm and underlining the demand for blockchain solutions in the electric vehicle market, Egochain has successfully completed its Initial DEX...

OkayCoin Releases Expert Guide to Earning Passive Income Through Crypto Staking rewards

Los Angeles, USA — OkayCoin, a pioneer in crypto staking solutions, proudly announces the release of its comprehensive guide to cryptocurrency staking, aimed at...

Trailblaze Marks its IDO Milestone with Platform Launch, Setting New Standards in the Launchpad Industry

Trailblaze's IDO, heralded by significant community support, showcases a vigorous drive for innovation within the launchpad sector. This pivotal achievement emphasizes a progressive shift...

Maximizing Ethereum Staking Rewards: Tips and Tricks

Are you looking to maximize the potential of your Ethereum holdings? Stake Ethereum using OkayCoin and take advantage of the benefits of decentralized finance...

Okratech Token Launches Ambitious Expansion Initiatives with Web3 App Store and New Strategic Partnerships

June 5, 2024 – Okratech Token (ORT), an established entity in the blockchain industry, is making significant strides with the launch of new products...