Even though the Bitcoin price has been on a prolonged downtrend, the positive news has kept rolling in.
On October 25, Chinese President Xi Jinping stated that China must be the leader for global blockchain development. This reaffirms the idea that blockchain will eventually be the underlying technology for financial transactions. The president stated that China should concentrate on expediting the growth of the promising technology which could initiate set the stage for a new wave of industrial transformation.
Additionally, one day after the intense grilling by Congress of Facebook’s proposed cryptocurrency, Libra, Rep. Patrick McHenry (R-NC) stated that the proposed cryptocurrency will launch despite the regulatory backlash. The Congressman also condemned the constantly increasing level of scrutiny the cryptocurrency is facing.
As for the current downtrend, crypto trader @polarhunt stated that the previous two Bitcoin corrections have finally aligned.
— Polar Hunt (@polar_hunt) October 25, 2019
The white graph represents the Bitcoin price movement since its inception until December 2015. The blue graph is a continuation of that movement — representing the BTC price from December 2015 to the current price.
What is interesting is that the movements after the December 2013 and December 2017 highs coincide with each other. This allows us to compare the corrections side by side. At the time, of this writing they are both at the same place, hence “aligning in time and space.”
Let’s compare them more closely.
What the tweet is saying is that, even though the two corrections took different paths, they have finally reached a point of convergence — being at the same level after the same amount of days.
The corrections are displayed with the same colors (white & blue) below.
For the future price movement, let’s assume that the ensuing movement until the next high will also be similar. If that is so, the BTC price will reach a high of $500,000 by the end of 2021.
In order to restrict the range of possible price movement, we will use curved trend-lines connecting each high and low.
The projected high at the end of 2021 falls way above the resistance line — making it unlikely to be reached.
However, this does not invalidate the fact that the corrections have been extremely similar. It only makes it unlikely that the ensuing upward move will be of a similar rate.
This is to be expected since during the logarithmic growth curve increases become smaller as time goes by.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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