Bitcoin’s Long Term Parabolic Uptrend “Intact,” BTC Price Nearing Support after 9 Months
- “Bitcoin parabolic uptrend which started in January 2015 is still intact” – Tuur Demeester
- But as it slowly approaches maturity the price uptrend will “gradually slow down”
- Meanwhile, Bakkt makes another ATH at 2728 BTC but twitter counts seem to have hit the bottom
- Mike McGlone of Bloomberg Intelligence says with Bitcoin maturing volatility going to get crushed
Since hitting 2019 high at $13,900, Bitcoin price has lost about 45% of its value. Yesterday, we went down to as low as $6,785 but soon made our way above $7,000.
Currently, BTC/USD is trading just under $7,300, up about 3%, as per Coincodex while managing the daily trading volume of $482 million.
Despite this drop in price, Bitcoin investor and analyst Tuur Demeester, who is the founder of Adamant Capital, a Bitcoin Alpha fund, says the “parabolic uptrend which started in January 2015 is still intact.”
Bitcoin price is yet again touching the support on this trendline. This is the first time since March 2019, the support has been found.
The ongoing sentiments in the market, Demeester says reminds him of the December 2018 when the price hit the bottom at $3,200.
He further notes that as the flagship cryptocurrency slowly approaches maturity or saturation, the price uptrend will “gradually slow down.”
This we have already been seeing as though we made a new high in every cycle, the percentage of gains have been significantly less than the previous ones. The returns in 2011 bull run have been of 318,864% which was reduced to 58,474% in the next bull cycle. Then in the last bull cycle, we registered only 11,960% gains. This content reduction of gains is expected to be seen in the upcoming bull rally as well.
This slow down in the BTC price as Bitcoin matures will cause parabolic trendlines to fall. As such, “a violation of the trendline above won't be proof that the secular bull market in bitcoin is dead,” said Demeester.
The Mayer Multiple we are seeing right now has only happened 5% of the time in the history of BTC prices. Buying caps on. #bitcoin@TraceMayer @pierre_rochard @bitstein @TuurDemeester @MartyBent @MarkYusko @100trillionUSD @APompliano
— Preston Pysh (@PrestonPysh) November 22, 2019
While the price has been careening, the volume has been increasing across the board. Bakkt hit another all-time high with 2728 BTC exchanging hands yesterday.
However, twitter counts seem to have hit the bottom.
Looks like the bottom is in for the Twitter counts – hodling the fort! pic.twitter.com/pbLP3Hzusv
— skew (@skewdotcom) November 20, 2019
Meanwhile, Mike McGlone, senior commodity strategist at Bloomberg Intelligence says this has been investors shifting their interests to equities as Bitcoin takes the role of a more stable asset like “digital gold.” McGlone told Kitco News,
“Bitcoin has matured now. [Bitcoin] futures are getting active, we’re going to have ETFs. The first ten years, we’ve had a run-up, and now it’s in a range that’s going to migrate higher. Volatility is one thing that’s almost going to be certain to get crushed,”
However, unlike many analysts and traders on Crypto Twitter (CT) who have turned bearish on Bitcoin halving, McGlone is bullish because,
“Bitcoin, as well know, has limited supply, and as a commodity guy when I see something with a supply that’s guaranteed to be limited, yet demand is picking up with more adoption, I view that as very attractive for price.”