Bitcoin: Bullish Reversal Signals Are Forming And $19,000 Is Doable

Chris B Murphy profile picture
Chris B Murphy


  • Bitcoin has corrected by 46% of the huge move from November to December.
  • There are a few early signals that a reversal may be in the works.
  • In this article, we'll look at those bullish signals and the path that Bitcoin might take on its way to $19,000 again.

In my last two articles, we looked into the fundamental backdrop that's impacting blockchain technology, Bitcoin, and cryptocurrencies in general.

In this article is a price analysis to determine where Bitcoin stands in relation to the overall medium-to-long-term trend. In my opinion, there are a few early bullish signals flashing that indicate a potential push higher back to $19,000.

Any rise will bode well for those investing in the Bitcoin Investment Trust (OTCQX:GBTC) or following the ongoing developments if the first Bitcoin ETF through the Winklevoss Bitcoin Trust ETF (COIN).

Bitcoin Price Action from November:

After rising 250%, BTC corrected with a 46% fall that would normally be considered backbreaking for any other instrument.

Bitcoin bounced higher by 36% off the most recent bottom on December 22nd.

It has since pulled back somewhat to current levels.

Does the 46% correction mean the end of the rally?

The daily chart below shows just how important Fibonacci levels are to traders for determining entries and exits. A Fib. level is merely a correction measured in percentage terms.

Two of the key Fib. levels are the 50% and the 61.8% levels. Popular entry strategies include going long at a key Fib. level while simultaneously placing a stop-loss order below the next Fib. level.

With the bounce off the 61.8% level (circled in green below), Bitcoin rallied hard after being pushed down to its lows on December 22nd.

The rally formed the wick of the candle circled and may be a sign of a reversal. Why? Sellers drove BTC down in December, but buyers looking to enter long positions jumped at the opportunity to get in at the key 61.8% level. The result was BTC bounced, as buyers took control of the market thus forming the wick.

If Bitcoin creates another higher high

This article was written by

Chris B Murphy profile picture
Hello. I'm a financial writer/blogger & market risk analyst with 15 years in the financial services industry including over 10 years on trading desks of two major banks. --------------------------------------------------------------------------------------------------------------------- My Top-Down meets Bottom-Up Approach to financial analysis includes: ----------------------------------------------------------------------------------------- How Macro Trends & Economic Indicators, Bond yields, Capital flows, & The Fed - Drive Sectors & ultimately Individual Stocks. - Financial analysis of Bank stocks, Commodities, Industrials, & Tech. - Former currency risk advisor to Corporates, with Options and risk policy experience.- Published Work includes: Financial analysis (Investopedia); - Retirement Income ( & Wealth Management Firms. - Hold an Economics degree with a concentration in Finance (University of Rhode Island).

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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