Ongoing bitcoin Rally Throws A Wrench Into Long-Standing Chart
Many have welcomed the recent rally with open arms, as it allowed () to surpass in the $4,000 region. However, this move, which caught many traders with their pants down, throws a massive wrench into one of the most famous charts in this industry, which depicts the lead following a predictable chart that could theoretically be stretched out into infinity.
As seen below, has long followed a cycle of booms and busts, rallying to new highs, pulling back, before doing the same all over again. In fact, for its whole life as a tradable, liquid asset, ’s approximate price action could be somewhat charted in advance. But, BTray past $5,000 quashes this cycle, as is now not following its parabolic trend no longer.
If these deviance corrects itself, could very well revisit its lows, and even potentially establish new ones.
No matter where ends up finding a long-term floor, Josh Rager of Level recently explained that if history repeats itself and trends are upheld, it is well too early for to rally and break out of an accumulation range. He explains that the accumulation period in 2015 lasted 216 days. If continues higher at current, the accumulation period would only have lasted half that time.
These two analyses in tandem paint the picture that could not only revisit lows, but that it could also trade in a tight range for the coming three or four months.
Could bitcoin Continue To Deviate?
The fact of the matter is, the conditions, both in the industry and the macroeconomy, are drastically different than 2014 to 2016, when all was fine and dandy on the global stage. Some now argue that it is nonsensical for to continue to follow patterns established during a different backdrop, as the has arrived to allow for to take the stage.
Brendan Bernstein, the founding partner of Tetras Capital, an industry investment firm whose partners seem skeptical of , recently laid out why he believes ’s long-term prospects are . Bernstein looked to the rise in democratic socialism, MMT, and Quantitative Easing, three macroeconomy policies that will likely boost the chances of hyperinflation and fiscal mismanagement, as to why could see success. The Tetras representative also looked to the growing level of capital required to support baby boomers, the set-to-be tumultuous 2020 election cycle, and the impending 2020 halving as further factors as to why could see further .
All this has only been underscored by the fact that the technology underpinning this whole embryonic industry is unparalleled. The Lightning Network, ’s current best chance at surmounting the benefits provided by classical payment rails, has exploded parabolically in recent months, meaning that mainstream could just be on the horizon.
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Published at Sun, 07 Apr 2019 06:04:26 +0000
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