bitcoin collapsed by 9% on almost all exchanges when the Bitfinex and Tether news broke out, however, on Kraken, the price fell as low as, ~$4,300.
Based on past data, it can be assumed [with a grain of salt] that there is a possibility of the formation of a double bottom pattern, as it did in 2015 when the whole community believed that bitcoin had started the bull run after the first bottom.
Source: TradingView
The Death Cross, formed in September of 2014, pushed the price of bitcoin from $556 to $187, which was followed by a fake Golden Cross, which was mistaken signal of the start of a bull run. However, the price decided to dip again, forming another Death Cross followed by another Golden Cross, which was the start of the actual bull run. During this time frame, two bottoms, one in, January 15, 2015, and the other, in August 2015, were formed.
At press time, the same pattern seemed to be forming, as the first bottom was witnessed on December 15, 2018, which was followed by a Golden Cross. The community speculated that this could be the start of the bull run, which could be wrong. Assuming that the price takes the same 115 days it took in 2015, the next bottom might take place in the month of July 2019, after which the second Golden Cross could be formed, indicating the actual start of the rally.
If this theory holds true, it could put the price a bit higher than the previous bottom [$3,200], i.e., somewhere around $3,250 to $3,400.
There is, however, another possibility of bitcoin moving lower than what was previously imagined, which would make the price movement of bitcoin in December 2018, a step towards the actual bottom. This was in the previous article about the fractal nature of bitcoin and how fractals are a representation of human emotion and can be found everywhere in nature and hence could be assumed that this cycle repeats itself.
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Published at Tue, 30 Apr 2019 14:44:57 +0000
