Without wasting your time, I am sharing a long term trend which Bitcoin has followed for over a decade.
This gives an idea on two things which are happening in the market right now:
- Bitcoin is still following the 2014-2015 cycle – Double-Bottom Before Halving
- Bitcoin is about to test the most important trend line ever
- 6.18 fib of From the last bear market’s bottom to this Bull market’s ATH
Following 2014-2015 Market Cycle
As you can see in the chart below, Bitcoin has been following the 2014-2015 market cycle in price movements very accurately.
Bitcoin bottomed out in Jan 2015, 550 days before the next halving in 2016 and did a double bottom before resuming further.
In 2019, Bitcoin bottomed at $3000 level around 550 days before halving and is now in process to double bottom which is a major level on the most important trendline we will see ahead in the blog.
The Most Important Trendline For Bitcoin
The most important trendline in bitcoin was created in 2010 which is the bottom line started at the price level of 0.19 cents (insane, I know :P) which was resistance and supports for few months and then Bitcoin never touched it again.
But this year, Bitcoin has broken the 2nd most important trendline from the last 8.5 years (middle one) last month. The only target is to test the next trend line which coincides perfectly with our next point, the 6.18 fib level.
Ultimate 6.18 Fib level
If you take the last market’s bottom to the last ATH, the most important fib level comes out at 6.18 level which is also the level at which our most important trend line (Bottom line) will support Bitcoin.
Right now, as of writing, Bitcoin is testing the 7.8 fib level which will get most probably broken as both the RSI are in a downward trend.
Also, the current scenario which is from Bottom of $3,000 to a recent high of $14,000 has the 6.18 fib level at $8,000 which is now broken and might test our previous low at $3,000 level (ultimate 6.18 fib level, most important trend line and 2014-2015 cycle pattern). The only thing that can save us from this is $6,400 level which is the next support.
So, sit tight as we might see another $6,000 bitcoin. Just in case, have some portfolio stacked as this market can surprise, you don’t wanna miss the ride waiting for cheaper Bitcoin.