Bitcoin Holds $4,000 Level as Historical Evidence Points to Incoming Bull Run

Bitcoin, the flagship cryptocurrency, has recently seen its price decline after it recovered from a sell-off that saw its price dip below the $4,000 mark for the first time since September of 2017. Notably, BTC has been holding on to the $4,000 mark.

According to CryptoCompare data, the cryptocurrency is currently trading around the $4,000 mark, after losing about 8.9% of its value in the last 24-hour period. Its market cap is currently at $69.6 billion.

Notably, some analysts have pointed out that historical evidence suggests bitcoin’s bearish trend may be about to end. According to MarketWatch, the bear market is seemingly drawing parallels to that of 2014-2015, as back then bitcoin dropped 43% in the first two weeks of 2015, before starting to recover.

In the two weeks ending on November 25, the price of the flagship cryptocurrency lost 45% of its value. Its losses have now also surpassed 80%, just like in 2015. Following 2015’s low, bitcoin entered a bull trend that culminated in 2017’s all-time high near $20,000, before it entered its recent bearish trend.

 Rob Sluymer, a technical analyst at Fundstrat Global Advisors, was quoted as saying:

In contrast to bounces that have developed through 2018, weekly RSI [relative strength index] is now at levels not seen since BTC’s last bear market low in early 2015 and BTC is showing very early evidence of responding to its long-term uptrend after three major downside moves through 2018.

Tom Lee, a managing partner at Fundstrat, as the news outlet pointed out, has made a $25,000 by the end of the year bitcoin price prediction he maintained for most of 2018, before dropping his target to $15,000 earlier this month. Per Lee, it takes bitcoin about 9 days to make a full year’s gain, so holding on to funds can make sense instead of attempting to time the market.

Bitcoin’s price chart shows that its RSI has only hit current levels back in 2015, before it went on a bull run. Sluymer, however, pointed out he believes BTC is establishing a “multi-quarter bottoming process that is likely to extend well into mid-2019.” He noted it’s too early to call a bottom.

Bitcoin's RSI shows it's severely oversold

Notably, bitcoin’s recent rally was fueled by a plethora of different factors, including Nasdaq, the world’s second-largest stock exchange, revealing that it still plans on launching bitcoin futures, despite the months-long bearish trend.

Earlier, the Amun Crypto Basket ETP started trading on the Swiss Six exchange, the country’s main exchange, and has seemingly been well-received by the market. The ETP tracks the price of 4 cryptoassets – BTC, ETH, XRP, and LTC – backed with an index provided by MVIS.

Other top cryptocurrencies are also in the red, with XRP dropping 4% to $0.035, and Ethereum’s ether dropping 4.3% to $113.2. Tron’s TRX, which recently surged before Justin Sun revealed it will have improved privacy in the first quarter of next year, dropped 11.2% to $0.014.

Privacy-centric cryptocurrencies like XMR and dash are down more than most other top cryptos, as they’ve lost about 6% and 8% of their value, respectively. Interestingly, zcash has only dropped 1.4% to $79.3.

Weekly Newsletter

Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

Featured Image Credit: Photo via