Possible Bitcoin Pattern to Watch Out
Hi, to all the Cryptomaniacs!
The month of May 2021 has been quite an astonishing one in which BTC has seen a major correction of over 50% within a few days. Right now our crypto king is trading within the range of 30,000$ to 40,000$. People are going crazy as BTC is consolidating and neither going upwards nor downwards. Bull supporters get disappointed every time BTC fails to break 41,000$, on the other hand, bear enthusiasts are waiting for BTC to fall below the crucial level of 30,000$
Has Anyone Been Looking at the Monthly Chart?
If you look at bitcoin in the monthly timeframe, it forms an evening star pattern, which signals a possible trend reversal to a bearish market. On top of that, monthly formations are quite concrete as compared to lower time frames. However, we have 3 days before the monthly closing but with so many resistances sitting on top of BTC, it is highly unlikely that it will nullify the evening start pattern.
If we consider that BTC will continue its bearish momentum, till what price can it fall? History is proof that Bitcoin has never fallen below the previous cycle’s all-time high, so I expect Bitcoin to take a maximum fall till 23,000$ to 25,000$ zone. In my opinion, BTC will respect the lower band of the rising wedge which it is forming in the monthly time frame in the below-given chart.
Probable Path that Bitcoin can take Take
If the evening star pattern plays out in the monthly time frame, BTC will ladder down to 23,000$ to 25,000$ and get into consolidation mode for a few months before shooting up to the 150,000$ to 200,000$ mark. This means that this bull cycle is not going to see its all-time high in 2021. Another data suggesting that this bull cycle will be prolonged is the fact that every bull cycle in the past was longer than the previous one.
The first bull cycle lasted approximately 332 days if we consider the no. of days from price bottom to peak.
The second one lasted around 770 days
The third one went over a 1050 days
If we forecast this bull cycle, it will last approximately 1260 days. This means 42 months or 3.5 years on average. The last bottom which Bitcoin made was in December 2018. We can safely say that it has been 30 months since we made the bottom and we still have 12 more months to go! So, the data tells us that we are going to peak in the middle of 2022!
What probably can happen is that Bitcoin is going to consolidate within the range of 25,000$ to 50,000$ for a few months before showing a parabolic move to 6 digits. What I plan to do is keep accumulating Bitcoin in this accumulation zone, but I am not going to put all my money in at once. I will break my buying into different parts and keep a fair chunk of money safe for the worst-case scenario (Don’t forget this is crypto).
Note- Cryptocase is not a financial advisor and the above is not financial advice. The information is solely for educational & informational purposes only. Cryptocase is and shall not be responsible for any profit or loss incurred by you