When will Bitcoin See a New All-Time High? | And More in This Weeks Crypto Update.
- Decentraland Elliot Wave Cycle Has an Unfinished 3-Wave Pullback
- Trust Wallet Token Multi-Year Triangle Pattern Calls for $1.4 Target
- When will Bitcoin See a New All-Time High? And when can we see an end to the Bear Market?
Decentraland Elliot Wave Cycle Has an Unfinished 3-Wave Pullback
Decentraland’s (MANA) long term Elliott Wave cycle has an unfinished 3-wave pullback that needs to complete before the next bull run. Simply put, the Elliott Waves cycle operates in a five-wave movement in the direction of the trend, followed by a 3 wave movement against the trend.
What is Decentraland (MANA)?
Decentraland is a decentralized virtual world that runs on the Ethereum blockchain. The world is made up of land parcels that are known as “decentralized applications” (dapps). These dapps can be anything from games to social networks. Decentraland is powered by the MANA token, which is used to purchase land and other virtual goods. The Decentraland Elliot Wave Cycle has an unfinished 3-wave pullback, which suggests that the price of MANA is likely to continue to rise in the future.
Elliott Wave Analysis
In the long term, MANA is trading in a five-wave bullish cycle, where the current pullback from the November 2021 peak looks to be just a correction in wave IV. Typically, waves 4 are countertrend moves that unfold in 3 waves.
The first leg “a” of wave 4 can be called completed at $0.59 low. Wave “b” of wave IV can be right now in progress. Around the $1.50 level — a previous all-time high swing point, wave “b” can find resistance, and the price may turn lower for the final wave “c” to complete the 3 wave pullback in wave IV.
April 2018 peak was another major cyclical high, which is an excellent candidate to become a strong support level before we bottom in wave IV. However, since in Elliott Wave analysis, wave 4 never overlaps wave 1, we can expect the next MANA leg lower to fall somewhere above the 2018 peak.
What is the Elliot wave Analysis?
The Elliot wave is a form of technical analysis that is used to predict future market movements. It is based on the idea that markets move in cycles, with each cycle having two waves. The first wave is an upward trend, while the second wave is a downward trend. The Elliot wave theory is used to identify these trends and predicting where the market will go next.
RSI Oscillator
Additionally, the weekly RSI has broken below the 50 mid-level, which typically occurs when the price pullbacks in wave IV. Therefore, we can use this signal to call wave IV complete once the weekly RSI breaks above the 50 mid-level.
Looking forward: In the short term, the $1.00 psychological level is the first significant level that the bulls are going to eye.
Trust Wallet Token Multi-Year Triangle Pattern Calls for $1.4 Target
Since its inception, Trust Wallet Token (TWT) entered into a long period of consolidation, developing a symmetrical triangle formation. The multi-year symmetrical triangle pattern now calls for a retest of the upper resistance level around the $1.4 level.
What is the Trust Wallet Token?
Trust Wallet Token is a new cryptocurrency that is based on the blockchain technology. It was created in order to provide a more secure and efficient way to do transactions. The Trust Wallet Token team is made up of experienced professionals from various fields, including finance, law, and marketing. They plan to use the token to create a more efficient and user-friendly ecosystem for cryptocurrency users.
Symmetrical Triangle Pattern
This multi-year basing pattern has the potential to continue driving the price action in the coming months unless we get a clear breakout on either side of the symmetrical triangle. First, TWT’s price made a base near the $0.30 level, which was followed by a powerful uptrend topping out at $1.65.
A subsequent sell-off pushed TWT’s price around the $0.45 level generating another base from where we rallied again, but the price failed to reach the previous high. TWT topped again at $1.40 and sold off to $0.55 to form another base.
In the short-term, we have left the base, and if the same pattern repeats again current rally can fall below the previous major high — the March 2022 high of $1.40.
A weekly break and close above the $1.00 psychological level has the potential to cement the bullish case scenario.
How does the Symmetrical Triangle Pattern work?
The Symmetrical Triangle Pattern is a trading pattern that is used to identify potential trend changes. The pattern is created when the prices of three crypto move in a symmetrical triangle pattern. The first item to move in the pattern will set the stage for the other two items to follow. Once one of the other two items begins to move, it will cause the price of the third item to change as well. This process continues until one of the items breaks out of the triangle pattern and starts moving in a different direction.
RSI Oscillator
The weekly RSI has also broken above the 50 mid-level; the last two times this signal occurred, we had two powerful rallies. The bulls have the upper hand as long as the weekly RSI continues to print positive momentum readings.
When will Bitcoin See a New All-Time High? And when can we see an end to the Bear Market?
At the time of writing, Bitcoin’s (BTC) price is trading 51.42% below its all-time high, and the whole crypto market has been in slow decline. As a result, there is a lot of uncertainty right now, and many investors are now asking when this vicious bear market will end, and we will see a new all-time high.
Crypto Bear Market Cycles
Previous crypto market cycles can help us estimate roughly when the current bearish trend has the highest probability of ending and when a new bull market will begin. For example, the last cryptocurrency bear market lasted about 2.5 years, as, after 2.5 years, we had a new high price.
Two and half years measured from the November 2021 peak brings us to March 2024 as a possible time to declare the end of the bear market. This means that we could expect a new all-time high around that time. The next halving event is expected to occur around May 2024, which falls in line with the past cycles.
Bitcoin Halving Cycle
In the long-term, Bitcoin seems to follow a 4-year cycle, also known as Bitcoin’s 4-year halving cycle. During each halving event, the number of Bitcoins awarded to miners in each block is cut in half. One of the most fundamental concepts of economics is that if the supply of something is restricted and the demand for it stays the same or increases, then its price rises.
This is one of the main reasons why the Bitcoin price tends to recover after each halving event. For example, after the third halving event in May 2020, Bitcoin ended its bear market and went parabolic afterward.
If history is to repeat again and Bitcoin continues to follow its 4-year halving cycle, the next parabolic bull run can happen as soon as 2024.
Bottom line: If the numbers are correct and the bear market could end in March 2024, there are still ways to trade and make a profit. We have written a blog about how you can manage this. You can check the blog down below.
Cryptocurrency Bear Market: Strategies of a Smart Investor
The cryptocurrency market has gone through several bull and bear cycles in the decade since its inception. Savvy investors leverage both these cycles to optimize their investment portfolio, rather than letting their emotions and gut reactions guide their investment. In this article, we review key strategies that savvy investors use during a cryptocurrency bear market cycle.
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