Bitcoin is returning from a 7-year uptrend; Is the correction complete?

The price of bitcoin has just returned after reaching a 7-year upward trend. This line has marked the bottom of the price and the end point of the downtrend many times before and during the previous downtrend.

Bitcoin is currently above the $ 40,000 level and is at 20 percent of the record low at the end of January. Despite the recovery in prices, the “feelings and opinions of traders” mostly show that the price has not yet reached its bottom.

The price of bitcoin has just returned after reaching a 7-year uptrend line; But can this, together with the small number of people who believe that the price has reached its bottom, be a serious reason to mark the end of the market downturn?

The price of bitcoin returned over $ 40,000 in the blink of an eye yesterday; The level is still well below the $ 100,000 that the community of digital currencies, analysts, mathematical models and many others have predicted for the peak of prices in 2021.

The same people who predicted in the past that the price of bitcoin would reach $ 100,000 are now saying that the recent price recovery is nothing more than a “cow trap” and the price could still fall to $ 30,000 and even below this level. Slowly

In many cases, the market follows the opposite trend when traders expect the price to move in a certain direction. Traders were selling their bitcoins, thinking the price would fall again, and as a result, the recent jump has left many of them out of the market. Especially considering that the price returned to higher levels after reaching a 7-year upward trend. It is worth mentioning that this trend line has acted as a price bottom twice in past downturns.

Bitcoin is returning from a 7-year uptrend;  Is the correction complete?
7-year uptrend line in a 1-week perspective for the bitcoin / dollar market

This line of upward trend, which is almost a decade old, is shown in the image above. The origin of this line is the downward trend in prices during the declining market from 2014 to 2015, and once in the same period the price temporarily fell below this level. After hesitating around the line for almost two years, the price of bitcoin rose from about $ 2,500 to $ 20,000 in a few months.

During the downward trend of 2018, the price always fluctuates above this line and once in December of the same year (December 1997) the price candle hit the level of the upward line, which led to the formation of the price floor of this downward trend. Just like the downward trend from 2014 to 2015, support for the line was lost shortly thereafter during the Great Depression in early 2020, known as Black Tuesday.

The resumption of support for this spark line was the beginning of a broad upward trend in bitcoin in late 2020 and early 2021, and since then the price has fluctuated within a certain range. Since 2020, bitcoin has reached this level only once, after an unexpected drop in price to about $ 30,000.

The price jump has begun, but few traders expect this level to be the lowest. But why doesn’t anyone think so? Bitcoin has reached its price below many times more than any other level after reaching this line. In December 2018, most traders believed that the downward trend would continue, and few accepted that the price had reached its bottom. It was later revealed that this level is the bottom of the downward trend in 2018.

After bitcoin returns from a 7-year uptrend; Is the correction complete? appeared first for currency.

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