• The recent rally to $25,000 shared many similarities with the 2019 bear market rally.
• On-chain and market indicators relative to the 2019 rally send mixed signals on whether or not Bitcoin’s rally will continue.
• Analyzing BTC’s data from the 2019 bull market offers valuable insights into BTC’s current support levels and upside price targets.
Overview
This article reviews Bitcoin data from the 2019 bull market, which saw a 330% surge in Bitcoin’s price to highs around $14,000 from the November 2019 low of $3,250. It provides insights into BTC’s current support levels and upside price targets.
Similarities between the two rallies
The recent rally to $25,000 shared many similarities with the 2019 bear market rally, which saw a 330% surge in Bitcoin’s price to highs around $14,000 from the November 2019 low of $3,250. The BTC/USD pair recently rose 60% from its November 2022 low.
On-chain Indicators
On-chain indicators relative to the 2019 rally send mixed signals on whether or not Bitcoin’s rally will continue. For instance, Bitcoin’s price surpassed the 200-day moving average (MA) at $19,600 which could encourage paper traders looking to open a long position. Traders are likely paying attention to the 200-week moving average at $25,100 as reclaiming this level could encourage technical buyers to join in on this bandwagon. However, until a breakout happens traders might continue staying on sidelines as funding rates for perpetual swap contracts are currently neutral suggesting so..
Price Targets
Analyzing BTC’s data from the past bull run gives us a better understanding of potential upside targets for current prices if it breaks above important resistance levels such as $27k or even higher up till mid-$30k region where previous strong resistance had been set in June & July of last year before it tumbled down towards lower regions later that year..
Conclusion
In conclusion reviewing bitcoin data from past rallies helps us understand key patterns that can potentially be used as future indicators when gauging potential support and resistance zones while trading this asset class hence giving us valuable insights into what we can expect ahead even though there is no guarantee of success every time .