Recently, the price of Bitcoin has moved above $40k after seeing a bounce from the 7-year bull trendline. Now, this could mean that the bottom is already in, and we could move further up. But again, you never know what happens with Bitcoin. The good part is that this trendline has already been at the bottom of previous bull runs.
Bull market or not?
This trendline is a good sign for the markets and has instilled some positivity. But there is a good chance that it could be a bull trap, and we could revisit lower levels. This time the bottom was near $33k, and it’s clear that many investors didn’t get in the bottom waiting for $30k. So, whales could try to manipulate the market and try to get Bitcoin to $30k again.
There is also a chance that we can move lower to even $20k. Robert Kiyosaki said that he would buy it when the price moved to that level. This is because he predicted that a great depression is coming based the current market scenario and the increasing rates of inflation.
The 7-year bull trendline of Bitcoin
Now, this is something that holds a lot of importance because of the time frame of 7 years. That is a long period for a trend to hold on, and the movement of Bitcoin’s price could follow. But since it has come to the limelight now, things could behave in a different way. This trendline helped in boosting the price of Bitcoin during the 2017-18 bull run when it moved to $20k in a parabolic bull run.
Again when the price of Bitcoin crashed from the top after the 2017 bull run, it formed support in this line. That was the market bottom, and then we moved to the next bull run in 2020. The price of Bitcoin has not broken this trendline since, and unless something drastic happens, it’s unlikely too.
What are your thoughts as Bitcoin bounces off the 7-year bull trendline and moves to $40k? And do you think this could be the bottom of this bull-run? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.