Bitcoin’s in A Consolidation Period, History Says the Next Top Won’t be Before March 2021


The US economy could face 18 months of rolling shutdowns without an effective vaccine for the novel coronavirus as the outbreak flares up again, said Federal Reserve Bank of Minneapolis President Neel Kashkari. He said,

“We’re looking around the world. As they relax the economic controls, the virus flares back up again.”

As we have seen, shutdowns in an attempt to curb the spread of coronavirus have led unemployment to skyrocket in the US and markets and economies are taking a massive hit.

Kashkari warned that “this could be a long hard road that we have ahead of us,” and it’s hard “to see a V-shaped recovery under that scenario.”

The Federal Reserve has responded aggressively to mitigate the effect of the pandemic on the US economy by launching several unprecedented emergency programs including slashing interest rates to zero and $2.3 trillion in the stimulus. And more is expected to come.

With Fed printing money like crazy, experts are advising to jump out of cash and invest in hard money like gold and bitcoin.

Last week, Cleveland Fed chief Loretta Mester said the central bank was “likely not done” to keep credit flowing in the economy. She said,

“We’re always looking for things where if we have a tool to be able to do it, and if we think it’s needed, we’re going to do it.”

We are in consolidation

The world's leading digital currency, Bitcoin, is a hard asset with a limited supply of 21 million, unlike the money which the Fed keeps on printing. Last month, in the market-wide sell-off, bitcoin crashed hard and is now trading around $6,780.

Industry commentators are emphasizing the need to invest in bitcoin during this economic turmoil because this is why the crypto asset was created in the first place and it is BTC’s biggest opportunity.

Currently, the flagship cryptocurrency is in a consolidation period while investors are accumulating the dip.

According to trader MoonOverlord this consolidation period will last longer as the higher we go the longer the period. But there is no need to be concerned because we have been at this point before and bitcoin was built exactly for this.

“The bigger the gain, the more money added to the market cap, the higher the blow off top. = The longer the consolidation,” explained the trader.

If we take a look at Bitcoin price historically, in 2011, BTC’s top led to a 92% drawdown and it took 622 days to return to its all-time high, noted analyst Ceteris Paribus.

In 2013, the drawdown was 85% from the top and this time it took 1,181 days to make a new high.

In 2017, we had an 84% drawdown and it's been 848 days since ATH. In order to match the 2013-2017 cycle, we need 333 days more to reach ATH which puts the top of the cycle in March 2021.

Bitcoin (BTC) Live Price

1 BTC/USD =$31,725.9239 change ~ -1.26%

Coin Market Cap

$589.85 Billion

24 Hour Volume

$13.98 Billion

24 Hour VWAP

$31.91 K

24 Hour Change

$-399.71

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