- Bitcoin could very well drop down to $8k if current parabola gets violated
- Historically Q2 & Q4 are better than Q1 & Q3
The leading cryptocurrency has been enjoying a bull rally since April this year which has Bitcoin surging over 220 percent till date in 2019.
From less than $4,000, Bitcoin went to as high as $13,900 during this rally. Currently, we are trading below $12,000 while down just 41 percent from its all-time high (ATH). The next pump in this month, just like we saw in April, May, and June would take us to a new high.
The previous BTC bull markets ended APPROX at 13x, 8x, 5x of the 350-day moving average. Descending Fibonacci sequence.
Today’s 350-day MA is at about 5,800 (3x from here would be 17,400).
— cryptolayday (@cryptolayday) July 7, 2019
However, it doesn’t mean a drop, more than the one seen earlier this month that took us to $9,600, is not in the picture.
Current Parabola Violation Could Take us to $8k
Veteran trader Peter Brandt says, if the current parabolic phase gets violated, we can go down to about $8,000.
“If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ definition of new parabola w/ shallower slope,” Brandt said.
Given the fact that Bitcoin has never dropped more than 40 percent during the bull market, we could go down as far as $8,000-$8,500.
Per the chart shared by Brandt, we could chop just like we did in 2018 after the late 2017 surge.
Bitcoin could see a correction to $8,000 level:
If current parabolic phase is violated, we could expect either an 80% correction of 7-month advance or much smaller correction w/ definition of new parabola w/ shallower slope. $BTC Note formation of possible 2-wk H&S or H&S failure pic.twitter.com/6IF1bHREAv
— Peter Brandt (@PeterLBrandt) July 7, 2019
Q3 Going To Be A Slow One
The correction may or may not happen but these three months could be expected to be rather slow. Historically, Q1 provides us with fine returns but Q2 emerges with much stronger gains. Q3 however, always has been a slow one, more or less the same as Q1 while Q4 outshines them all.
“Bitcoin seasonality is usually strong – historically Q2 & Q4 are better than Q1 & Q3. 2019 is no exception so far,” states Skew.
Bitcoin performance in Q3 to be than Q2, expecting to have a slow quarter:
Now that we have had a good start to the year – what should we expect?
Bitcoin seasonality is usually strong – historically Q2 & Q4 are better than Q1 & Q3. 2019 is no exception so far. pic.twitter.com/ClsPfJMtVw
— skew (@skew_markets) July 8, 2019
Per this chart, on an average, Bitcoin price could see a surge of about 20 percent which means, we might not be breaking the all-time high record set in last bull cycle at $20,000 in this quarter.
But this could very well be a blessing in disguise. This quarter is the perfect opportunity for people who either missed out or looking to add more BTC to their bags before we move onto the monster rally.