Bitcoin has been blowing everyone’s mind over the past few weeks, reaching levels nobody thought possible.
But, if you check the charts from 2017/18, a worrying pattern emerges, and if it comes true, then this could be the end of the moon boys.
Will the Fib retracement levels cave in Bitcoin’s skull, or will Bitcoin win yet another battle and go on to fight another day?
The Evidence is Damning
We all love a good pump, and deep down, nobody wants this movement to be over.
Sure, we’d love a little dip right before payday so that dirty government money goes a little further in stacking those sats, but nobody would say no to $50,000 a Bitcoin.
Unfortunately, it looks like the party is over, if history is anything to go by, which it usually is in the crypto world.
If you check out the Fib retracement levels from 2017/18, you can see that 1, 0.786, 0.618, 0.382, 0.236 & 0 were all created in the run up to the ATH and were all hit throughout 2018.
The same patterns are present in the run up from $10,000 to the top at $41,000. In the last bull run, we saw a massive dip mark the end of the top, and we’ve had that already this week.
If the trend continues to pull through, we could very well see Bitcoin slide down to $12,000 by May/June 2022.
That might seem like a long time away, and it is, but that doesn’t mean we’re going to see another ATH between now and then.
Now, this might seem rather bearish and unlikely given everything that’s happened, but the resemblance is uncanny.
Can it Happen?
Anyone can draw some lines on a graph and make out a pattern. The proof is in the pudding, and many will want to know if it’s even possible.
When Bitcoin goes on mad runs like it has lately, everyone and their dog piles in.
Once that happens, all it takes is a couple of whales to liquidate large positions. Once that happens, an unstoppable chain reaction will take place, causing Bitcoin to tank.
Newbies to the crypto world will sell off their positions, people looking to take profit before getting stuck with a $12,000 Bitcoin will also sell, creating an unprecedented amount of selling pressure.
This is what gives this theory credibility. So, keep an eye out for a couple of whales selling off vast chunks of their Bitcoin wealth.
No matter the fundamentals or institutional demand, if whales can trigger a mass selloff, Bitcoin will dump and it will dump hard.
More people than ever before from outside the crypto world are in Bitcoin right now, and you’re banking on them not selling for Bitcoin to remain on its path.
Let’s Wait and See
Anything is possible at this point, so let’s buckle up our seatbelts and watch the charts closely.
Stick your charts on at least 4 hours, with 1 day to a week being the best for gauging longer-term sentiment.
If Bitcoin is going to drop, it’s best you prepare and get your Bitcoin onto an exchange ahead of time and set up your stop losses.
Otherwise you could be holding a huge bag for a couple of years to come!