Bitcoin has resumed its downward trend and as of 4:45 PM, ET is trading lower by almost $1,300 or (-6.38%) at $18,880. It broke through support which was the 2017-2018 high of $19,660 and seems destined to trade to the 2019 high at $13,880.
“We are in the midst of the fifth of these parabolic cycles. The first rule has already been met when in December 2020, we traded above the previous record high ($20,00), and the monthly candle doubled in size. However, the final two characteristics point to the possibility that Bitcoin has yet to fully correct from the current record high in the market.
Bitcoin seems like it could have made its bottom seeing as it did hit our minimum target of $17,770 which represents the 78% retracement and has had a slight bounce off that level. The retracement used stretches from the lows of the covid crash ($3,825) to the all-time high ($69,000).
Bitcoin is simply doing what it has always done, after every parabolic rally going back to 2011 when BTC shot up from roughly $0.50 to $32, there was a correction that followed which wiped out at least 78% - 86% of the gains before another bull cycle began.
We have all heard this saying before, often told to someone who is faced with a setback as words of encouragement. The idea behind the phrase is that simply pulling through an issue of any sort will make you come out of it better adapted on the other side.