The price of Bitcoin (BTC) may have peaked at $ 60,000, but calculations suggest that the price level will matter much more to the bears than to the bulls.
In a Tweet from October 14, the popular Twitter account TechDev again highlighted the historical data that has so far accurately tracked Bitcoin’s highs and lows.
How about an 80% crash in the price of BTC to … $ 60,000?
Although the BTC / USD pair is likely to pick up all-time highs and climb to six figures this year, Investors’ attention is already turning to how much the price of Bitcoin will fall after its next high.
The idea that BTC price action moves in cycles -with a bearish phase and a bottom of 80% of the maximum- it has been widely accepted.
What is much more difficult to believe in the current circumstances, however, is that $ 60,000 may just be the floor price of that potential 80% correction.
Using the Fibonacci sequences, TechDev showed that each Bitcoin bottom fell within an identical range.. This explains both the lows of less than $ 200 in 2014 and the lows of approximately $ 3,200 in December 2018.
Given the cyclical metamorphoses of Bitcoin, the next logical pullback therefore has between $ 47,000 and $ 60,000 as a target.
“I know nobody cares about the macro during a crash. But the last two BTC bear markets have bottomed logarithmic Fibonacci of 1,486-1,618 from the previous cycle “, commented.
“This suggests the next bottom bottom is $ 47,000-60,000. If that’s where we end up after an 80-85% drop … The math gets fun.”
That the $ 60,000 is 20% of the cap means that Bitcoin would face a $ 300,000 test this cycle.
An uncanny resemblance to gold
Bitcoin’s momentum has been tied to expectations that US regulators will finally approve some kind of Bitcoin exchange-traded fund (ETF).
Although opinions on the impact of this decision are mixed, according to commenters, its importance is not a red herring, and it marks a true milestone for Bitcoin that has no turning back.
The Austrian Investor and Analyst Niko Jilch se referred this week to famous investor Paul Tudor Jones explaining the “hype” for the Bitcoin ETF.
Tudor Jones had previously noted that Bitcoin’s cycles were similar to those of gold in the 1970s, just when it had become a futures product. and was enjoying a ten-year bull run followed by a 50% correction.
The gold rip in the 1970s, TechDev additionally notes, fits extremely well with Bitcoin’s performance since October 2020.
#BTC / 70s gold fractal check …
Now it’s just getting ridiculous. pic.twitter.com/QOfJuwpceq
– TechDev (@ TechDev_52) October 15, 2021
BTC / 1970s Gold Fractal Check … Now it’s getting ridiculous.
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