The best time to accumulate is when prices are low. Even though Bitcoin has had a huge rally this week the digital asset is still 75% down from its all-time high. Looking at previous accumulation periods may offer some insight into the current market situation.<\/p>\n
Last time Bitcoin went through a major boom bust cycle was in 2014 and 2015 when it dropped by a similar amount and most of the mainstream media and naysayers wrote the asset off. BTC fell from $1,130 to around $200 and the chart pattern virtually mirrored what happened in 2018.<\/p>\n
During that bear cycle the accumulation period was around 216 days from January to August 2015. Only after this did Bitcoin begin to climb again throughout 2016 and 2017 recording an epic 9900% gain to its all-time peak in December.<\/p>\n
Looking at current charts indicates that we could be half way through this accumulation phase<\/a>, market by this week\u2019s big green candle. If the pattern repeats itself charts will remain sideways until July when things really start to ramp up again.<\/p>\n https:\/\/twitter.com\/Josh_Rager\/status\/18775552<\/p>\n Buying Bitcoin at $5,000 does not sound as good as $3,600 but with a greater chance of increasing than dumping further it becomes a more attractive investment, at least in the short term. Most investors will not catch the absolute bottom for Bitcoin which may well have been on December 15 when it dumped to $3,200.<\/p>\n Fundstrat\u2019s Thomas Lee pointed out that there will be more bullish momentum since Bitcoin has crossed above the 200 day moving average for the first time since March 2018. Many analysts would consider this a sign of trend reversal and this week\u2019s rally could have served as the end of crypto winter.<\/p>\n 1\/ CRYPTO source: data scientists @fundstrat_ken @AlexKernA<\/a> pic.twitter.com\/Ru19HLlE4G<\/a><\/p>\n — Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) April 2, 2019<\/a><\/p><\/blockquote>\nMore Bullish Momentum Above 200 MA<\/h2>\n
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Definitely a positive development that #Bitcoin<\/a> is now above its 200D mov. avg.
–Many consider P>200D as sign of $BTC<\/a> in positive trend
–BTC acts significantly better P>200D, a win-ratio of 80% vs 36% when P<200D<\/p>\n