Last week, the price of Bitcoin crashed to below $50K. This signaled that the market might finally be nearing the dreaded bear market as billions of dollars in longs were liquidated with prices plunging to $45K. The bitcoin crash, as always, brought down the whole market with it and most altcoins suffered one of their reddest days. Assets in the space have since begun to recover but not by much.
Bitcoin itself has posted various recovery trends that have brought its value back up towards $50K. However, the coveted price point remains elusive for the digital asset as its struggles to find its footing above it post-crash. Nevertheless, pseudonymous crypto analyst TechDev, has said that this may only be temporary as bitcoin could be readying for a parabolic move.
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A Discussion Of Analysts
In a discussion with fellow crypto analyst Benjamin Cowen, TechDev lays out some of the indicators that could point to a possible bullish pattern for bitcoin in the short term. If there is one thing that the digital asset is known for, it is its highly volatile nature. While most tend to focus on negative connotations of the word volatile, it also carries some positives for the asset.
Bitcoin can surge in price just as quickly as it crashes and this has characterized the space for the longest time. TechDev uses a number of indicators to lay out his argument for an impending parabolic move, including logarithm growth curves in addition to Fibonacci levels. He lays both of these atop a Bitcoin long-term chart that shows two-week candles on them.
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Focusing on the Fibonacci level, TechDev explains that when bitcoin breaches the 1.618 level, then the asset is set to go parabolic. Coincidentally, this Fibonacci level is also in the same place as the middle logarithmic band. The crypto analyst also revealed that the market looks to be right on track and healthy.
“As of today, we’re kind of right at what I would call a key intersection point between this mid curve of the log regression band, this 50% fib curve of this band, and this 1.618 level. If we can close a 2-week candle above it, I am expecting some explosive price velocity upwards, and I’m excited to see where that takes us.”
Bitcoin Price Continues To Fluctuate
Bitcoin price fluctuations have not really come as a surprise. If anything, these kinds of dips are expected when an asset grows as much as bitcoin has in the past few months. Although market sentiment tends to skew in the negative during times like it, it has always presented as an opportunity for investors to load up at what some refer to as ‘discount prices.’
BTC bounces above $50,000 | Source: BTCUSD on TradingView.com
Bitcoin had mostly consolidated below $50K following the crash but a recovery trend in the early hours of Tuesday saw the asset breaking through this resistance level and landing snugly above $51K.
Featured image from Toshi Times, chart from TradingView.com
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Author: Best Owie