Bitcoin Analyst: “Deep Correction” Coming With December 17 Pivot Point Reached – Bitcoinist.com


There’s no denying that Bitcoin and other assets exhibit cyclical nature. In fact, cycles are built directly into the cryptocurrency’s code, revolving around the asset’s block reward halving taking place roughly every four years. The quadrennial cycle causes an imbalance in supply and demand, that greatly favors price appreciation.

But that is not the only way the cryptocurrency has exhibited cyclical tendencies, and it has one Bitcoin analyst expecting a “deep correction” on the basis that a key date and pivot point has been reached. Is a correction more characteristic of the asset’s past bull runs around the corner, even as price passes beyond $20,000 for the first time?

How To Get Free Crypto  

Pivot Point Could Bring “Deep Correction” To Bitcoin, According To Analyst Take On Cyclicality

The cryptocurrency market chatter has never been louder, now that Bitcoin has broken above $20,000 for the first time in its history. The last time the cryptocurrency came close to such a number, was when it topped out back in 2017 just below the rounded number.

Rewinding to then, the stage was set very differently. Retail investors were FOMOing in late hoping to strike it rich, while institutions were rightfully skeptical over the asset’s sustainability at such prices, and took a wait and see approach.

RELATED READING | ALLIANZ CHIEF ECONOMIST WHO BOUGHT 2018 BOTTOM: I SOLD MY BITCOIN TODAY

Bitcoin built a stable base at roughly $200 billion market cap, making it a network with real staying power. The same institutions that didn’t buy into the sudden blockchain revolution, now see the cryptocurrency as far more valuable than even $20,000 – but due to its use as an inflation hedge.

The worlds wealthy are looking into BTC as a way to protect buying power following whatever fallout that’s to come from a society-altering year.

Coinbase Banner  

That former peak was on December 17, 2017 – exactly three full years to the date from tomorrow. And on that three-year anniversary, while a new all-time high above $20,000 has been set, one analyst expects a similar reaction to take place next.

 

December 17 is of significant importance to the cryptocurrency's cyclicality | Source: BTCUSD on TradingView.com

Why Does The Cryptocurrency Market Top And Bottom In December?

Bitcoin’s meteoric rise in 2017 came to an end on December 17. Interestingly, Bitcoin also bottomed one year later on the same date in 2018.

The odd string of cyclicality continues, with 2019’s bottom around $6,400 set on – you guessed it – December 17. Tomorrow is yet again December 17, and while the circumstances are so different from each previous “pivot point,” the recurrence is enough to pay attention to.

RELATED READING | BLOOMBERG ANALYST: BITCOIN IS “TINY” NOW, BUT “PRICE DISCOVERY STAGE” IS HERE

The analyst mentioned above isn’t the first to spot such seasonality or cyclicality in Bitcoin and other cryptocurrencies. Most market participants believe in cyclical, halving-based theories, so why not also subscribe to the idea that tops and bottoms can happen in a specific sequence of dates?

FreeBitcoin Banner  

Some of the world’s greatest traders and analysts to ever live believed there was money to be made by understanding these cycles. W.D. Gann developed tools that specifically look at time in relation to price and geometry, similar to how astrology focuses on planetary alignment.

The below “Gann Box” adds credence to the cyclical theory, in which Bitcoin could see a “deep correction” of between 30 and 40%, before springing back to $30,000 or more. The 30-40% correction zone would line up between the 0.5 and 0.618 Fibonacci retracement levels. The tool goes beyond timing each December 17 and also happened to catch the June 2019 peak and the June 2020 consolidation phase that led to this point.

W.D. Gann created tools that could clue analysts in on how to time markets | Source: BTCUSD on TradingView.com

Data shows that Bitcoin typically corrects 37% on average in bull markets, which would line up with such targets. On the most extreme end of any downside, $11,700 could be the reversal point. But a retest of $13,800 appears to be highly probable, despite the asset’s ongoing rally.

The above chart also highlights other key dates that appear to be pivot points for the cryptocurrency. The soonest is February, where the deep-V short-term bottom was set back in 2018, acted as the final retest of bear market lows, and was the peak just prior to the Black Thursday collapse.

He left behind very few secrets on how to use his tools | Source: BTCUSD on TradingView.com

Next is April, which has been a strong bullish marker for four years running.

Other Gann tools that could assist with timing, might also shed some light on what happens next. Unfortunately, the “legendary trader” rarely shared his secrets, so utilizing these tools isn’t always clear.

One thing he did leave behind, was at least some proof of cyclicality in commodities markets around December, living on his Wikipedia page.

Gann's theory on markets topping was based on planetary alignment | Source: Wikipedia

Bullish investors might balk at the idea of such a large correction from here or that such pivot points exist. But lest they forget, the last time Bitcoin crashed from $20,000 it was cut down to under $6,000 in just a few weeks. That size of a correction is unlikely, but it does present the case for why a 30-40% drop cannot be ruled out, even with the asset clearly beginning its next bullish phase.

FEATURED IMAGE FROM DEPOSIT PHOTOS, CHARTS FROM TRADINGVIEW.COM

Go to Source
Author: Tony Spilotro


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.