Entrepreneur and cryptocurrency investor Nebraska Gooner recently shared a thread on Twitter where he details Bitcoin’s journey to $1k in the coming days or weeks, that’s yet to be known.
The pull-down in March this year has been similar to the February one in 2014 which gave way to the bulls. The interesting element that Gooner notes is that bear cycles in both the periods that are 4 years apart started roughly the same day.
The similarities just don’t start from the day it all started but further moves forward in 100 days when both the cycles made a correction of 60 percent approximately.
Talking about the bottom of the Bitcoin market, the last bear market, we had a drop of about 83 percent from the “highest candle close during bull run.” In reference to 2017’s bull run, this 83 percent drop marks at $3,200.
The similarities in the market are just too many as at the end of January 2015 the price was rejected by .786 fib that was exactly what happened at the beginning of February 2019 as well.
Just like in 2015, he says we might be in bull trap currently as “we managed to push with-in 3% of the recent high and are now retesting the 11ema.”
However, there is one inconsistency that is .886 fib level has not been tested yet. In 2015, the bottom of the bear market was seen with a 26 percent wick and this much shakeout currently will take us at $2,370.
However, back in 2015, people didn’t believe enough in BTC. Now, in 2019 as Gooner puts it “now anything under 6K was considered premium pricing” and fundamentals are better. So, he is expecting Bitcoin to top out on the current run after a “couple hundred dollars higher” at best.
“Does this mean the market has bottomed? It could mean that. But remember, people are greedy. And usually the greediest of people are the people with most money. Can they get their 26% discount this time around?”
In order to get this 26 percent discount, the best way to “screw” over the retail investor is to have a sudden pump, only for stops to get hit. From here, new traders “FOMO the break.” So, an instant wick down will happen that would take price to the low $3k’s.
When price hit the low $3k’s, experienced cryptocurrency investors will start buying the dip which will lead to a bounce that would “suddenly” hit $5k. Gooner says here news outlets will pump out “new bull run has started,” that will have Bitcoin hanging around $5K.
But it won’t be the bull run as Bitcoin will basically play around $5k to $6k here. After trading sideways, he expects Bitcoin to not be able to hold $5k and as price goes below “entry,” panic selling will ensue. As panic keeps on rising, the price will keep on dropping creating a cycle that will see $3k breaking.
A full-on meltdown mode will see $1k and capitulation. This is where he says institutions will get their 26 percent discount.
“Weak hands left from the past couple years are gone. Capitulated. New comers are left battered and bruised. Sellers are now fully exhausted. Buyers are happy. Bear cycle over. Bull cycle begins.”
Live Bitcoin (BTC) Price:
1 BTC/USD =$13,747.6051 change ~ 3.64%
You can find the full story here and make sure to read all of the top bitcoin price predictions too:
My indicator is based on identifying trends
Check this out:
Red X signal was given Feb 2014. We then got bull div for the first time end of March 2014
Red X signal was given March 2018(4 yrs later) and we now have bull div for the first time end of March 2019 pic.twitter.com/eImp42E4ZI
— NebraskanGooner (@nebraskangooner) March 26, 2019