Bitcoin’s price fell below $50,000 last week. As billions of dollars in longs were liquidated, with prices plummeting to $45K, this signified that the market was finally approaching the feared bear market. As it typically does, the bitcoin meltdown pulled down the whole market, and most altcoins had one of their reddest days. Assets in the sector have since begun to recover, albeit only marginally.
Bitcoin’s value has risen to almost $50,000 as a result of several recovery tendencies. However, the coveted price point for the digital asset remains elusive as it struggles to establish its footing above its post-crash. However, pseudonymous crypto expert TechDev has stated that this may be a short blip as bitcoin may be preparing for a parabolic spike.
TechDev discusses some factors that might indicate a probable bullish pattern for bitcoin in the short future with fellow crypto expert Benjamin Cowen. If there is one thing that digital assets are notorious for, it is their tremendous volatility. While most people focus on the negative connotations of the word volatile, it also has some beneficial implications for the asset.
Bitcoin’s price may rise as swiftly as it can fall, which has been the case for the longest period. TechDev presents his case for an upcoming parabolic surge using a variety of indicators, including logarithmic growth curves and Fibonacci levels. He places both of them on top of a Bitcoin long-term chart with two-week candles.
Using the Fibonacci level as a guide, TechDev says that when bitcoin reaches the 1.618 level, the asset is poised to go parabolic. This Fibonacci level happens to be in the same location as the middle logarithmic band. The crypto researcher also stated that the market appears to be on pace and good condition.
“As of today, we’re kind of right at what I would call a key intersection point between this mid curve of the log regression band, this 50% fib curve of this band, and this 1.618 level. If we can close a 2-week candle above it, I am expecting some explosive price velocity upwards, and I’m excited to see where that takes us.”
The price variations of bitcoin have not come as a surprise. When an asset increases as much as bitcoin has in the last few months, these types of falls are to be expected. Although market sentiment tends to be negative at such periods, it has always allowed investors to load up at what some refer to as “discount pricing.”
Following the crisis, Bitcoin had generally stabilized around $50,000, but a recovery trend in the early hours of Tuesday saw the commodity burst through this resistance level and settle comfortably over $51,000.