Cryptocurrency

Caution: Bitcoin Signal from 2019 predicts that large downward movements

The Bitcoin chart shows an interesting inverse Fractal from the year 2019.The price action from February to March of last year, which led to an eruption, indicates a collapse of Bitcoin in the year 2020.

Bitcoin is currently operating in the same manner as at the time, in 2019 – only in reverse.

Market analyst Artem Shevelev has recognized the inverse relationship between the Trends in 2019 and 2020 in the case of Bitcoin. So it seems that the price has moved since June of 2020, almost exactly in the opposite direction of the between February 2019 and March 2019 recorded price movement.

The Bitcoin-Fractal 2019 (inverted) looks exactly like the current price action. Source: TradingView.com Artem Shevelev

Shevelev establishes a seven-phase Trend, the Similarities between the Fractal 2019 and 2020 shows. The first Phase (red) shows that Bitcoin has seen a small Dump, followed by a consolidation movement. The second Phase (blue) shows erratic Pumps&Dumps.

This later led to a further increase and a withdrawal action in the third Phase (green). Shevelev adds:

“After a small Pump (Phase four) remained the price sideways stuck and then suddenly for about 6 days, a small Dump. In the year 2020, we will see a similar price action, we are now at point 5, and just in the last 4 days we were in the sideways movement.“

The Pump of 2019, the Dump of 2020

Bitcoins inverse Fractal sets is also open to a bear scenario unfolds 2020. As the above graphic shows, broke the crypto-currency from their seven-phase development in April 2019 to the top. Its price rose in the next three months to more than 230 percent.

If Bitcoin enters the fifth Phase, he could trace his two steps away, a similar – if not exact – rate eruption. Only this time, the movement could be directed downwards.

Bitcoin-Fractal of 2019 (normal) to 2020. Source: TradingView.com Artem Shevelev

“Realistically, both results should be expected,” adds Shevelev.

And:

“For me it is important, in the case of medium-term positions, a reasonable Stop-Loss to use. Now I am Long and expect a Stop-Loss under 8600. In the opposite case, I will expect a rate increase, because we are in the long term is still bullish“

Bitcoin was able to hold its gains since the beginning of the year about 25 percent. The crypto-currency has recovered since its low in mid-March by more than 150 percent.

BTC has refused to fall below $ 9,000, despite the repeated collapse of attempts made in the vicinity of this level.

However, the Bitcoin market is shaky

Since Bitcoin keeps about $ 9,000, is the Asset prior to the monumental task, not to exceed the limit of $ 10,000 to $ 10,500 in. The crypto-currency, as well as adding to the profit the Trader is taking in the six-digit range. This has brought BTC/USD is in a stretched sideways range.

Bitcoin price forecast of George1Crypto. Source: TradingView.com

An Analyst looks at Bitcoin in the coming weeks by a further 2,000 to 3,000 USD to go back before it is over 10,000 USD bullish. He writes on Twitter:

“Tests of 6-7k’s 15k, before he reached the highest levels at 10.5 (…) the objective of at least”.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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