Bitcoin could be the most valuable coin, it is also synonymous with price volatility and unparalleled levels of unpredictability. However, it is emerging that Bitcoin is, after all, a cyclic asset, just like any other tradable instrument and its price movements can be predicted using ordinary tools like Moving Averages and Fibonacci retracement technical indicators.
Bitcoin Prices are Cyclic
According to a crypto analyst and Bitcoin trader, a lot of traders could be missing millions as a cost of basing their trading decisions on noise. In his assessment, traders are missing out on patterns that Bitcoin has been printing in the last four years.
Taking to Twitter, the defiantly confident trader said:
“The precision of Bitcoin is a beautiful thing. Do people really still think this is risky? BTC does the same exact thing every 4 year cycle while everyone misses millions because they listen to fake noise. Only the strong & smart survive here.”
But traders are not be blamed. Within the BTC trading cycles, it is not rare for prices to rally one minute and then tank the next, wiping gains and even edging lower much to the disappointment of traders. A case of fake breakout and bull traps are reasons one too many for traders for all calibers to play their cards close to their chest.
Traders are Cautious
Such a case was observed recently. Within minutes, Bitcoin prices rallied, adding $500 within an hour, only for prices to tumble in subsequent hours, trapping optimists and traders who were angling for a killing following a convincing technical pattern marked by a surge in trading volumes and a bullish candlestick with minimum to no resistance to the upsides as observed in lower time frames.
Bitcoin has been on a firm down trend in recent weeks. Following steep losses recorded in late November, when prices slumped and retested a 6-month low, it is only natural for traders and investors to be cautious. Tone Vays, in a recent podcast, discussed the likelihood of Bitcoin prices sliding below 2018 lows to $2,800.
While he could be right, fundamental factors seem to support Bitcoin in the short-to-medium term. Other traders are also optimistic, expecting a rebound in coming weeks.
I find it hilarious that all these “top” Bitcoin twitter people have capitulated & turned bearish at what is now one of the top 3 greatest buying opportunities in investment history. Their little signal blinks quick & they just throw in the towel? All noise.
— Riggs (@RiggsBTC) December 2, 2019
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich