The price volatility of Bitcoin since reaching ATH in December 2017 has led many to believe that assets are just a financial bubble.
There have been many bubbles throughout financial history. Even after the explosion, the property is usually stable afterwards and eventually, reaching higher levels.
Highlights of Bitcoin price
- The current Bitcoin price movement has many similarities with NASDAQ after 2000.
- Price may still be in its “cynical” stage.
- A breakdown below $ 3200 will invalidate this possibility.
A similar event is NASDAQ price in dot-com bubble. Price volatility in NASDAQ shares has been much similar to Bitcoin since the price reached ATH in December 2017. If the similarity continues, the current decline will be the last low before the uptrend for years. .
Bitcoin trader Trader gave a bullish case for BTC, saying that the price created a final low in the skeptic stage before moving up. He used a chart of NASDAQ from the dot-com bubble to reinforce his point.
Maybe you missed it but I think this thread makes a compelling bull case
I could be wrong (invalidation W1
I am putting my money where my mouth is
– // Bitcoin ack (@BTC_JackSparrow) March 15, 2020
Let's compare these two movements and determine if there are any similarities.
The NASDAQ reached a high of $ 5132 in March 2000. It was followed by a downtrend of 3,288 days. In the first phase, prices fell 78.59%, culminating in a low of $ 1108 achieved in October 2002.
After that, the price started an up move to reach 0.5 Fib level of the entire previous decline. The last low was reached in March 2009 at $ 1265 and the price has increased since then – currently at $ 6904.
An interesting observation is that the lowest monthly RSI ever recorded was in March 2009, although prices were higher than lows in October 2002.
The Tweet assumes that the March 2009 lows are the lowest level after the skeptic phase.
Bitcoin price reached a high of $ 19,666 in December 2017. It dropped for 364 days until December 2018, when it hit a low of $ 3122. This is an 83.86% drop and very similar to NASDAQ.
After that, the price increased and increased to 0.618 Fib of the previous decrease. The next low is the current level, reaching nearly $ 4,000 by March 2020.
Unlike NASDAQ, while the weekly RSI is oversold, it is not the lowest level ever recorded. It is slightly higher than the lowest level reached in December 2018.
For this low to become “skeptical”, it must be a higher bottom than the level reached in December 2018. A price close to $ 3200 will invalidate this possibility.
In short, the current and current price fluctuations of NASDAQ after 2000 have a lot of similarities – more specifically, the rate of decline since the ATH and subsequent retreat. If the fractal is not disabled, this could be the last low before a long uptrend.
A break below the December 2018 lows of $ 3200 will invalidate this possibility.
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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