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 Bitcoin price action moves in cycles – with a bearish phase and a bottom of 80% of the maximum – has been widely accepted.
What’s much harder to believe in the current circumstances, however, is that $ 60,000 may just be the bottom price for 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 low of approximately $ 3,200 in December 2018.
“I know nobody cares about the macro during a downturn. But the last two BTC bear markets have bottomed logarithmic Fibonacci of 1,486-1,618 from the previous cycle,” he commented. “This suggests the next bottom bottom is $ 47,000-60,000. If that’s where we come to after an 80-85% drop … The math gets fun,” he added.
Bitcoin’s momentum has been tied to expectations that US regulators will finally approve some kind of Bitcoin exchange-traded fund (ETF).
Open interest on CME Bitcoin futures hits an 8-month high, higher than when Bitcoin’s price was at $ 65,000
Although opinions on the impact of this decision are mixed, according to commentators, its importance is not a red herring, and it marks a true milestone for Bitcoin that has no going back.
Austrian investor and analyst Niko Jilch this week referred to famed investor Paul Tudor Jones in explaining the “hype” for the Bitcoin ETF.
Tudor Jones had previously highlighted that Bitcoin’s cycles were similar to those of gold in the 1970s, just as 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 further notes, fits extremely well with Bitcoin’s performance since October 2020.
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