What’s Next For Bitcoin?
Bitcoin (BTC) has continued to slip into Friday, falling to $11,200 as of the time of writing this. While the selling momentum has undoubtedly slowed, with bulls managing to push back bit by bit, many analysts are now short-term bearish, claiming that a move even further to the downside may just be imminent.
As Bravado’s lead analyst, Bitcoin Jack, points out, BTC topping at $14,000 late last month looks “awkwardly symmetrical” in structure to the 2017 top of $20,000 and the inverse chart of the bottom at $3,150 last December.
As seen below, this surely seems to be the case, with BTC’s price action matching up with key Fibonacci Retracement trends seen in the prior to extremes in the Bitcoin market. Just look at the charts below, which shows charts that look very similar, even from a quick glance. Jack notes that if the entire trend is to play out, meaning that if Bitcoin now acts as it did when it peaked at $20,000, it could fall even further, potentially to hit the $9,800 region for the second time.
This is what’s known as a fractal. And considering that the cryptocurrency space has historically been rife with these patterns, the case for a further move to the downside is surely growing.
That’s not all though. Philip Swift, an analyst that also goes by “Positive Crypto”, notes that over the past few weeks, BTC has been struggling to surpass twice its 350-day moving average, with bulls failing to claim that key level. Thus, he notes that a move to return to the $7,000s to $8,000s could be had, adding that he is bearish on a short-term time frame.
Is There Hope at All?
There is some hope, however.
With this move to touch $11,200 after a move above $13,000, twice, Bitcoin has decisively broken its parabola, which has held for over six months. Parabolas, especially in the cryptocurrency market, often result in corrections of upwards of 80%. But as analyst Nunya Bizniz points out, there’s a chance that BTC could find some much-needed support on the bottom bound of an upward-sloping parallel channel line, which has been merged with the previous parabolic trend line (seen in yellow).
If BTC was to fall to said trend line now, it would find a local bottom of around $11,000.
This lines up with another theory. As reported by Ethereum World News previously, Jacob Canfield noted that Bitcoin’s price action over the past month eerily resembles a corrective contracting triangle, which could either signal the end of a trend or a sign of impending continuation. Canfield shows that if Bitcoin follows this trend as it is shown in textbooks, BTC will fall to the low-$10,000s, rebound, fall once again, and break out to either the upside or downside.
Photo by Joshua Newton on Unsplash