At first, many laughed at it as pure manipulation, alluding to the false price movement that ended with Bitcoin falling back to the lows of the bear market. But in a famous tweet today, trader B. Biddles commented that price action from the end of 2018 to a 25% increase has formed a “standard BARR bottom”.
– BTC Time Traveler (@BTCTimeTraveler) March 20, 2020
“Exactly formed the bottom of BARR. Hint: This means the bear is about to break. ”
The BARR bottoming pattern is marked by several price trends: 1) a downtrend led to a large sell-off, causing a sharp decline in prices; 2) consolidation bottom pattern as long as the said downtrend is still valid; 3) forming an uptrend to overcome the downtrend formed in step 1); and 4) returned to the trend line before prices were much higher from the bottom.
B.Biddles' analysis was proved weeks after he posted the announcement. Bitcoin started moving to a high of $ 14,000 just 2 months away.
Although unorthodox, Bitcoin's recent price action is forming the same pattern. And that makes a lot of sense for cryptocurrencies.
Bitcoin bottoming pattern important is forming again
This morning, BTC Time Traveler shared the BTC chart online with the same message B. Biddles wrote last year: “Standard BARR Bottom”.
It's easy to understand why you think of this case. According to the chart, Bitcoin's price action from March 7 to today has all of the salient features of the BARR bottom: vertical downward trend, consolidation at the bottom, upward of the trend line formed during the period. First and go back to the trend line to confirm it is support.
The only thing missing is a spike away from the bottom.
Of course, there is no guarantee that Bitcoin price action will follow this pattern again. But do you know what they say: “History doesn't repeat exactly, but rhymes”.
There are many catalysts for Bitcoin bulls
In a note published on Telegram channel, Joe McCann – AI and Cloud expert at Microsoft (and cryptocurrency analyst), commented that BitMEX's sponsorship ratio (long pay ratio for short or opposite) “exactly what the cow wants to see”:
“Negative ratio, Very low formation and prices quickly regained gaining momentum ”.
According to McCann, this confluence is likely to drive more long orders.
Su Zhu, CIO and CEO of Three Arbow Capital, commented that Bitcoin could rise to $ 50,000 relatively quickly, marking an increase of over 700% from the current price of $ 5,975.
This is in theory the moment Bitcoiners have been waiting for
Several EM mkts are now pricing in significant risk of sovereign defaults
USD itself set on an inflationary course it will be hard to turn back from
– Su Zhu (@zhusu) March 18, 2020
“This is the theory that the Bitcoiner waiting
Some market There are currently significant risk valuations on national default
The USD itself is set inflation, it's hard to come back
If BTC holds these level This, can reach 50K relatively quickly”
Regarding why he thinks BTC boomed so in such a short span of time, Su pointed out the fact that some emerging markets are at risk of national default. At the same time, the US dollar is set for inflation, it will be difficult to return, and has been validated by trends in the bond market.
All of this gives decentralized and anti-inflation Bitcoin the opportunity to shine.
$ 6,400 is important
Notably, BTC is still below $ 6,400 but this is not the best sign of a bullish move.
Famous Trader Josh Rager commented that despite the recent price move, the candle closed on Friday below this level. $ 6,400 is very important because it is a “macro control point,” which can be a significant price point for at least the past two years.
Indeed, $ 6,400 is the bottom of December, and also plays a supporting role in the 2018 bear market, in which BTC tested the levels around $ 6,000 on several occasions before dropping 50% in November and December. .
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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