After Bitcoin (BTC) skyrocketed from $ 3,000 to $ 14,000 over a period of six months, analysts are convinced that the cryptocurrency will never visit the $ 3,000 figure again. Indeed, the logarithmic price curve containing the action of asset prices over the past decade shows that BTC will never again reach $ 3,000. However, there are some analysts who project that it might be only a matter of time, before such low levels are visited once again.
For some reason, fractal analysis is said to have gained a lot of traction in the case of crypto currencies. Analysts cover up historical price action on the current chart to try to predict what will happen next.
This fractal analysis works well on various occasions. As an example, a fractal analyst, NebraskanGooner, estimated the decline of Bitcoin from $ 9,000 late last year to $ 6,000, then the last recovery returned to $ 8,000. This same fractal indicates that a price reduction is imminent.
Another fractal analyst came from one of the cryptocurrency traders, Haejin. He noted that the price action of Bitcoin since the peak of $ 14,000 in June 2019 reminds us of what was seen in the bear market in 2018, with both cycles showing a downward price path, a fake wedge-shaped break up, volume decline, and signs of capitulation .
Haejin noted that if BTC followed a similar path that occurred in 2018, with prices soon to fall back to $ 6,000, then Bitcoin would surrender in March or April to drop to $ 3,300 during BTC halving (reducing the blockchain miner’s wages by half).
While this frightening fractal indicates that Bitcoin will return to its lowest position during halving in mid-May, some analysis shows the opposite will happen. In fact, an analyst who called Bitcoin a rally to $ 8,000 when BTC traded at a low level of $ 7,000 in early January, stated that the leading cryptocurrency could reach its highest level as before, only a month after halving.
Based on an earlier report from NewsBTC, leading Bitcoin analyst, Financial Survivalism, released its extensive analysis of TradingView earlier this month, which indicated that BTC could reach $ 20,000 on July 1, 2020, only about six months from now.
Simple historical price action analysis also shows that there is no way Bitcoin will fall dramatically when approaching halving. According to an earlier report from NewsBTC, four months before halving in 2012 and 2016, BTC was very bullish or strengthened higher in that event.
In the four months before the first halving in 2012, BTC prices rose tens of percent higher from $ 10 to around $ 14. In the four months before the second halving in 2016, the price of Bitcoin also became a parabolic effectively, from $ 432 to $ 700.