BTC: Understanding Healthy vs Unhealthy Bull Runs
Hello traders and investors, here I would like to compare and contrast the stark differences between a healthy and unhealthy bull run. I would like to dissect the 2019 bull run vs the 2020 bull run, as there is one major difference that I would like to focus on in terms of the differences of the two bull runs.
The first thing that we can witness from 2019 is that we saw an incredible 300%+ bull run. This is no doubt an incredible feat for Bitcoin during that time, but it was merely impossible to know when to enter the market with no confirmation in sight. We have seen a series of higher highs being printed, with no real pullback until the end of the blowoff top where most have entered. After the real pullback, most were probably entering the market thinking it was going to go higher, which wasn't the case as we were seeing a series of bearish confirmations and sell signals from our lagging indicators and a bearish descending triangle.
The second thing that we can witness from the current 2020 bull run is that it is much more extended and simply a matured bull run, especially taking into account of direct stock market correlations and the on-and-off decoupling of different assets. This year has brought interesting and new concepts of how the bull market is running, especially with the series of uneventful news such as the unfortunate COVID19 pandemic (my prayers are out for everyone to be safe!) and now the election cycle in place.
In my opinion, this is actually one of the most healthiest bull runs we have had with all things considered. The fact that Bitcoin has responded to all negative news and events from 2020, the fundamental news of Bitcoin and the store of value idea is being shown within the price action. We are also technically seeing a higher low with each consecutive pullback, which is absolutely fantastic from a bullish perspective. Now the underlying question remains, "when should I enter the market?" Based on confirmations, we can enter safely when Bitcoin consolidates when we create a new 'higher low', possibly in the upper $9,000 to $12,000 range for the longer perspective. Remember, Bitcoin can still have impulse waves in between, but the overall point is making sure you are riding the 'waves' of the market, not the impulse waves.
Trade Safe.
X Force
The first thing that we can witness from 2019 is that we saw an incredible 300%+ bull run. This is no doubt an incredible feat for Bitcoin during that time, but it was merely impossible to know when to enter the market with no confirmation in sight. We have seen a series of higher highs being printed, with no real pullback until the end of the blowoff top where most have entered. After the real pullback, most were probably entering the market thinking it was going to go higher, which wasn't the case as we were seeing a series of bearish confirmations and sell signals from our lagging indicators and a bearish descending triangle.
The second thing that we can witness from the current 2020 bull run is that it is much more extended and simply a matured bull run, especially taking into account of direct stock market correlations and the on-and-off decoupling of different assets. This year has brought interesting and new concepts of how the bull market is running, especially with the series of uneventful news such as the unfortunate COVID19 pandemic (my prayers are out for everyone to be safe!) and now the election cycle in place.
In my opinion, this is actually one of the most healthiest bull runs we have had with all things considered. The fact that Bitcoin has responded to all negative news and events from 2020, the fundamental news of Bitcoin and the store of value idea is being shown within the price action. We are also technically seeing a higher low with each consecutive pullback, which is absolutely fantastic from a bullish perspective. Now the underlying question remains, "when should I enter the market?" Based on confirmations, we can enter safely when Bitcoin consolidates when we create a new 'higher low', possibly in the upper $9,000 to $12,000 range for the longer perspective. Remember, Bitcoin can still have impulse waves in between, but the overall point is making sure you are riding the 'waves' of the market, not the impulse waves.
Trade Safe.
X Force
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