The masses are bearish on Bitcoin. The market is convinced that prices below $30,000 will be revisited given the continued weakness in the top cryptocurrency by market cap. All eyes are on the massive “bear flag,” but could it instead be a bear trap?
Bitcoin price continues to grind along a decade long parabolic trend line that in the past has put in several mid- to long-term bottoms. Here is a closer look at a currently unbroken trend line that BTCUSD must hold for continued parabolic momentum and what it could mean if we get a bounce from here.
Unbroken Decade-Long Parabolic Bull Trend Readies Base 4
If you ask around, most people will explain with certainty the several reasons they have for why Bitcoin is destined for sub-$30,000. Meanwhile, the price per BTC is grinding along a parabolic support line that over the last decade has proven to put in bottom after bottom.
Susiję skaitymai „Bitcoin Bear“ rinkos palyginimas sako, kad jau beveik laikas jaučių sezonui
The cryptocurrency became a household name in late 2017 due to its parabolic rally that eventually broke down and took the price per cryptocurrency back to $3,200. The retest of that level on Black Thursday only added to the base-building in the chart below.
Attention, base 4. Are we cleared for liftoff? | Source: BTCUSD svetainėje TradingView.com
Comparing the curved, decade-long trend line with the parabolic curve pattern pictured above, there is a chance base 4 is in the process of being built. Between base 3 and base 4, the parabolic asset – BTC in this case – doubles in value in a very short time.
From late 2020 to April 2021, Bitcoin price grew over six to twelve times in value during what would have been the run up from base 3 to base 4. According to this diagram, base 4 is also quite steep, allowing price to climb dramatically higher. The only problem is, this final base, if valid, suggests the end is near for this decade-long bull trend line.
With a parabolic trend line violated, the top cryptocurrency by market cap could plunge as much as 80% from whatever highs are set. Past bear markets have resulted in more than 84% declines from top to bottom. Parabolic rallies also tend to break down faster than it took to climb – similar to a rollercoaster’s anxiety-inducing ascent, followed by a speedy plunge and the ride is over until you decide to get on once again.
“Bulls take the stairs, bears take the elevator”
On-chain signals support a bottom at this level | Source: Stiklinis mazgas
On-Chain Signals Support Bitcoin Bottom At Current Levels
On-chain signals, like entity-adjusted dormancy flow exhibit similar signs of accumulation going on as other moments Bitcoin put in a significant bottom. Several of these on-chain bottoms arrived precisely as the price per BTC touched down on the parabolic trend line.
Susiję skaitymai Crypto Mimics Textbook Market Sentiment Cycle, What Happens When Confidence Returns?
Could this be a mere coincidence, or is there more validity that this parabolic trend line holds, a new base is build, and the final phase of the Bitcoin rally begins?
sekti @TonySpilotroBTC „Twitter“ arba prisijungti „TonyTradesBTC“ telegrama už išskirtines kasdienes rinkos įžvalgas ir techninės analizės mokymą. Atminkite: turinys yra mokomasis ir neturėtų būti laikomas patarimu dėl investavimo.
Panašus „iStockPhoto“ vaizdas, „TradingView.com“ diagramos
Source: https://www.newsbtc.com/news/bitcoin/now-or-never-bitcoin-builds-base-at-decade-long-parabolic-pattern/