Bitcoin To Leave $4,000 Forever
Is the bottom in? That the question that has been paining cryptocurrency investors for weeks and months now. According to popular analyst Moon Overlord, known for his astute noticings about long-term Bitcoin (BTC) cycles, this asset class may just have bottomed. He looks to historical trends, which show that after a capitulation event, BTC begins to trade in a slightly-sloped uptrend. In 2012, the uptrend was angled at 15 degrees, in 2015, 11 degrees. The fact that Bitcoin is currently holding an 11 degree uptrend, just like it did in 2015, led Overlord to the conclusion that BTC is currently in a “clear accumulation period.”
He further outlined his conclusions:
- The bitcoin bottom is in
- The absolute lowest price $BTC can reach is now around $4,000 (even this seems unlikely at this point)
- There’s a few months tops of accumulation left before it leaves these price levels forever
Trying to throw even more weight behind his call, Overlord remarked that Bitcoin is currently holding above its long-term parabolic and logarithmic trend line, which has supported the asset since it became liquid and tradable.
Overlord isn’t the only analyst to have looked to $4,000 as a key level for BTC. As reported by Ethereum World News yesterday, Chris Burniske, a partner at Placeholder (Ventures) and the author of “Cryptoassets”, recently remarked that Bitcoin returning to $4,000 off the recent Tether/Bitfinex debacle won’t be a bad sign. In fact, Burniske explained that
And David Puell, a partner at Adaptive Capital, has expressed a similar sentiment too. In a recent analysis piece on chartist Tone Vays’ channel, Puell noted that while he expects a move to $4,000, a strong rebound off the level would confirm his conjecture that the bottom is in.
The Harrowing Case For Lower Lows
While $4,000 is seemingly the absolute low Bitcoin will see… potentially for the rest of its life, some analysts are adamant that a move under the low-$3,000s are inbound.
In a recent episode of technical analysis on Tone Vays’ Youtube channel, the former institutional investor, along with three of his peers, postulated that as per the Hyperwave Theory, Bitcoin’s drawdown to $3,150 was only part of the leg down, not it in its entirety.
For those who missed the memo, a Hyperwave is a parabolic trend and a massive drawdown pattern that asset classes/markets with the potential to catalyze large macroeconomic shifts tend to experience at one point or another. Hyperwave creator Tyler Jenks has accurately applied the Hyperwave to the Dotcom boom and bust, the growth of Japan’s economy in the 70s and 80s, and, of course, cryptocurrencies.
If Bitcoin finishes its ongoing Hyperwave, which predicted the rally to $20,000 and subsequent drawdown, BTC could fall to as low as the $1,000s. In fact, Lead Wald, a subscriber/student of Jenks’ theories, and Jenks himself recently bet analyst Filb Filb that Bitcoin will hit $1,500 before $6,500. But will this pan out?
Photo by André François McKenzie on Unsplash
