[ad_1]
The current Bitcoin rally throws a key in the long-standing array
Many welcomed the recent rally with open arms as it allowed Bitcoin (BTC) to surpbad key resistance levels in the US $ 4,000 region. However, this decision, which has taken many traders with their pants down, throws a huge key into one of the industry's most famous charts, which depicts the main cryptocurrency following a predictable chart that could theoretically be extended to infinity.
As can be seen below, BTC has long followed a cycle of ups and downs, straightening before retreating, before doing the same thing again. In fact, throughout its lifetime as a liquid and tradable badet, action on the approximate prices of Bitcoin could be somewhat mapped out in advance. But the recent incursion of BTC beyond $ 5,000 cancels this cycle, because BTC no longer follows its parabolic trend.
If this deviation is corrected, Bitcoin could very well review its low, or even create new ones.
No matter where Bitcoin ends up finding a long-term floor, Level's Josh Rager recently explained that if history repeats itself and trends continue, it's way too early for BTC rallies and sort of its accumulation zone. He explains that the accumulation period in 2015 lasted 216 days. If BTC continues to be higher now, the accumulation period would have lasted only half that time.
$ BTC Model of accumulation
It took 216 days for Bitcoin to accumulate funds in the spring of 2015
If it 's been an accumulation, the $ 1,000 candle this week would be the exact middle of 216 days of accumulation and would end on July 19, 2019.
Pure speculation but fun to compare pic.twitter.com/I6YfHiqwdW
– Josh Rager ? (@Josh_Rager) April 5, 2019
These two badyzes combined show that Bitcoin could not only redefine the lowest levels, but could also move into a narrow range over the next three or four months.
Could Bitcoin continue to spread?
The fact is that the conditions, both in the cryptocurrency sector and in the macroeconomy, are radically different from those of 2014 to 2016, when everything was going well on the world stage. Some now argue that it is absurd that BTC continues to follow patterns set in a different context, as the "perfect storm" has arrived to allow Bitcoin to take the stage.
Brendan Bernstein, a founding partner of Tetras Capital, an investment firm in the industry that seems skeptical of Ethereum, recently explained why he believed BTC's long-term prospects were good. Bernstein has looked at the rise of democratic socialism, MMT and quantitative easing, three macroeconomic policies that will likely increase the chances of hyperinflation and fiscal mismanagement, by explaining why BTC could to know success. The Tetras representative also discussed the growing level of capital required to support baby boomers, the tumultuous 2020 election cycle, and the impending 2020 cut-off as additional factors explaining why Bitcoin could still be adopted.
Theres a perfect storm for BTC right now
– democratic socialism
– MMT (Modern Monopoly Money Theory)
– QE infinity
– 10,000 baby boomers retire every day (the number of their rights soars)
– election 2020
– US interest expense> tax receipts from here 2022
– BTC halved in 2020Never been more bullish
– Brendan Bernstein (@BMBernstein) March 29, 2019
All this has been emphasized only by the fact that the technology that underlies all this embryonic industry is unprecedented. The Lightning Network, Bitcoin's current best opportunity to overcome the benefits of traditional payment systems, has exploded parabolically in recent months, which means that traditional adoption may well be on the horizon.
Photo by Chris Liverani on Unsplash
[ad_2]
Source link
