The Bitcoin Multi-Year Trendline Will Break, Says Renowned Analyst


Two of the most prominent analysts in the industry maintain that a multi-year support trendline could contain Bitcoin from a further drop. But, there is one popular chartist who believes that “multi-year straight lines and long term log charts do not mix too well.”

The infamous support trendline

On Nov. 22, Tuur Demeester, a founding partner at Adamant Capital, pointed out that Bitcoin entered a parabolic advance in January 2015. Since then, he believes that the uptrend has remained intact since the flagship cryptocurrency continues to be held by it throughout the years.

Bitcoin
As BTC plunged to $6,480 on Nov. 18, Demeester noted that this multi-year support trend line was able to prevent this crypto from going lower.

Bitcoin

Nevertheless, he emphasized that as Bitcoin “slowly approaches maturity/saturation,” the uptrend will progressively slow down, which will result in the violation of the “parabolic trendline.”

Brandt said:

I think a prolonged journey below the line might be needed to thoroughly prepare BTC for the move to $50,000. The bulls must first be fully purged. When no bulls can be found on Twitter, then we will have a great buy signal.

Along the same lines, Peter Brandt, a 45-years trading veteran, highlighted the significance of the support provided by this price level. According to Brandt, if Bitcoin can bounce off the support trend line, it could break out in an upward direction to begin a new parabolic phase. Such a bullish impulse would take it to “attack” the all-time high of 2017 and “slice” decisively through it. Despite the bullish outlook, the analyst explained that if the trend line is not able to hold another downward move, Bitcoin would be bound for a further decline.


Bitcoin Analysis
Trend lines are “destined to fail”

Despite the importance that Demeester and Brandt have placed on this support level, Dave the Wave, a technical analyst and Bitcoin investors, claims that multi-year trend lines serve “more as projections rather than support.”

Bitcoin

Dave the Wave affirmed:

“[The new] multi-year straight line on a log chart, whether called a ‘parabolic uptrend’ or a long-term trend line, is destined to fail.” 

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