{"id":419098,"date":"2020-03-25T10:00:56","date_gmt":"2020-03-25T10:00:56","guid":{"rendered":"https:\/\/wncen.com\/?p=419098"},"modified":"2024-06-11T13:46:45","modified_gmt":"2024-06-11T13:46:45","slug":"bitcoins-price-action-still-looking-a-textbook-bottom-7000-inbound","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoins-price-action-still-looking-a-textbook-bottom-7000-inbound\/","title":{"rendered":"Bitcoin Price Still Following Exact Pattern That Marked 2018’s $3,000 Bottom"},"content":{"rendered":"

Over the past day or two, the price of Bitcoin has continued to show signs of strength, rallying as high as $6,800 on Tuesday afternoon <\/a>(TradingView data) as global markets begin to show signs of recovery after weeks of downward price action.<\/p>\n

Related Reading: House Democrats Propose \u2018Digital Dollar\u2019 in Move Big For Bitcoin: Here\u2019s Why<\/a><\/h6>\n

As it stands, the price of the leading cryptocurrency sits at $6,600, up 73% from the $3,800 bottom and up over 20% in the past five days in and of themselves. While many have said that this is just a short-term rally before an eventual return to the $5,000s, where Bitcoin is likely to accumulate, there is a key textbook bottoming pattern that BTC is following, indicating that the rally is not done yet.<\/p>\n

Bitcoin Continues to Trace Key Bottoming Pattern<\/h2>\n

Earlier this week, NewsBTC reported that Bitcoin has been following a textbook bottoming pattern<\/a> \u2014 the bump-and-run-reversal bottom (BARR bottom) that can be found in Thomas Bulkowski’s Encyclopedia of Chart Patterns.<\/em><\/p>\n

This pattern is marked by a number of price trends: 1) a downtrend that leads into a massive, vertical sell-off; 2) a bottoming pattern that sees prices consolidate for as long as the aforementioned downtrend; 3) a rally past the downtrend line formed in 1); and 4) a throwback to the trendline before a surge higher that leaves the bottom far behind.<\/p>\n

Interestingly, the pattern has held up days later, with a cryptocurrency trader recently sharing<\/a> Bitcoin’s price chart below, showing that it is currently entering the fourth phase of the BARR bottom, which should be followed by a surge past the phase one highs around $9,000 in the coming week or two, meaning the whole capitulation could be shortly reversed.<\/p>\n

<\/p>\n

This pattern is especially notable as it is the one that marked the bottom in the previous bear market, the one that transpired over 2018 and early-2019; indeed, if you were to pull up a chart from November 2018 to the high in June 2019<\/a>, you would find that the price action matches the textbook schematic almost perfectly, with all phases included.<\/p>\n

Of course, there is no guarantee Bitcoin\u2019s price action will follow this textbook pattern to a T yet again. But you know what they say: \u201cHistory doesn\u2019t repeat itself, but it often rhymes.\u201d<\/p>\n

Not Only Strong Sign<\/strong><\/h2>\n

This isn’t the only strong sign for the cryptocurrency.<\/p>\n

In terms of fundamentals, White House economic advisor Larry Kudlow believes that the United States Government\u2019s stimulus package will \u201ccome to roughly $6 trillion.\u201d<\/a><\/p>\n

\n

Here's some perspective on the astronomical number that is $6 trillion. <\/p>\n

$6 trillion is the same as <\/p>\n

– 1\/3 of America's GDP
– 130% of the Federal Reserve's balance sheet
– Enough money for $850 for each human being on Earth
– or 900 million Bitcoin<\/p>\n

Crazy.<\/p>\n

— Nick Chong (@n1ckchong) March 24, 2020<\/a><\/p><\/blockquote>\n