The price of dangerously parabolic bitcoins could plummet below $ 6,000

The main cryptocurrency currency in the world today has set a new intraday peak at $ 6,989 on the US Coinbase exchange, its best since September 5, 2018. This sustained trend has allowed bitcoin to record a net rebound of 122.69%. At the same time, asset performance was 83.98%.

This decision reflects traders' willingness to buy bitcoin at the highest recently established peaks, resulting in the formation of parables. In retrospect, a parabolic motion occurs when an asset climbs into an active uptrend channel, performs an upward escape one after the other without breaking the sweat and causes people to follow it. course.

GOLD PARABOLIC Move as announced on October 13, 2010 | SOURCE: STOCKCHARTS.COM

In a parabolic action, speculators buy because the price increases. They rarely worry about the underlying fundamentals that can pump the asset. Then, almost too suddenly, the price continues a series of volatile downside corrections before establishing a full bear market (in the worst case). Traders who could have bought the asset at the top of the session are the ones who are the most burned.

A correction is coming

Bitcoin, now at the center of a bullish orgy, anyway forms a traditionally recognized parabolic scheme. Young active, Bitcoin saw three times the same formation of parables on his ten-year-old market. The first two parable formations took place in 2013, while the other took place in 2017. Each of them ended up in a serious accident, even though it sparked amazing bullish movements later.

BITCOIN PRICE PARABOLA TRAINING | SOURCE: TRADINGVIEW.COM, COINBASE

We can not predict the duration of the current parabolic motion of Bitcoin. Long-term prospects set the price at over $ 20,000, as many Bitcoin bulls predict. But beware, the longer the formation of parables, the more the correction will be important. For example, 2017's rising share reached its peak in nine months, but its correction lasted more than 12 months. In the same way, it took eleven months to form a parable in 2013 and a minimum to finish in 13 months.

Alex Krüger has judiciously combined the rising action of Bitcoin with his daily relative strength indicator (RSI). The well-known cryptocurrency analyst pointed out that Bitcoin's RSI had penetrated deep into its overbought territory, adding that the last time it happened was December 6, 2017.

"The last time BTC did this overbought (RSI) on a daily chart, it was December 6, 2017, with a price of $ 13700," Krüger said. "At the time, a parabolic movement ensued."