Back to the future with the fall of Bitcoin, 2013 knew this was going to happen

Bitcoin is becoming more and more unpredictable every day due to its volatility. The king of cryptocurrency has gone against the expectations of investors and analysts. After a decent rally between June 22nd and 24th, the price closed at a three-month low. While it has bounced back a little, everyone has been wondering: will Bitcoin exceed $ 40,000 anytime soon? And when is that? The answer to the future lies in the past movement of BTC itself.

What happened in 2013

Bitcoin was only worth $ 100 8 years ago. At that time, BTC broke down (collapse) between the bull cycle and fell slightly before resuming the upward move. Bullish breakouts occur around the center line (black line) of the logarithmic Fibonacci growth curves. During this downturn, Bitcoin tested the Fibonacci level of 0.382 (yellow line) as short-term support before returning to resume its bull run.

Currently, Bitcoin is repeating this movement. BTC tested the orange Fibonacci level as resistance before collapsing in May, causing the price to drop below the midline. Additionally, June should close around the yellow 0.382 level. And if the positive signals are effective, the closing price could even be above this threshold.

Bitcoin’s current movement is exactly the same as it was in 2013 as the price is moving in the same direction from now on. If we look at the 2013 and 2021 comparison charts, we can see some consolidation in the yellow Fibonacci area and the middle (black) line breakout level in 2013.

Bitcoin Logarithmic Fibonacci Growth Curve | Source: Rect capital

Where will BTC go next?

To determine this, WEMA 50 and WEMA 21 must be carefully watched as moving averages are the most closely controlling BTC movements. Rect capital to explain:

“WEMA 50 and 21 are important tools for assessing the bull market … As long as the WEMAs are seen as support, the coin will continue to recover.”

In 2013, Bitcoin held WEMA 50 as a support at all times. The situation in 2021 is the same. The price maintained a consolidation within WEMA levels 21 and 50 (see BTC triangle structure diagram). This suggests that future price action will remain compressed within this triangle structure as both moving averages are strong over a long period of time.

BTC can break out or break from these levels, but there is no accurate estimate due to the volatility that follows.

WEMA 50 as a support line | Source: Rekt Capital

Triangular structure of Bitcoin | Source: Rekt Capital

WEMA 21 suffered a minor breakdown in 2013 before Bitcoin flipped it over in support and entered another bull run. A collapse has also been observed on the chart now, but where BTC will go from here is what is causing fear in the market. It is important for BTC to break out as breakouts historically lead to a long-term bull market. In the meantime, a collapse will result in a prolonged bear storm (e.g. 2014-2015).

WEMA 21. Diagram of bitcoin | Source: Rekt Capital

Where is bitcoin now?

At the moment, BTC appears to be moving towards a non-bullish market. This coin has fallen below 50 WEMA and if it doesn’t come back in support soon it could create a quick expansion opportunity for the bears.

Bitcoin below road WEMA 50 | Source: Rekt Capital

However, what Twitter user K_Godel commented below is likely to happen too:

People comfortably forget, during the 2013 cycle, $ BTC suffered a ~ 80% correction to recover ~ 2300% by the end of the same year.

Will history repeat itself? pic.twitter.com/Sl5VjKYU5U

– _Gödel???? (@godeLives) June 25, 2021

“People easily forget that BTC suffered a ~ 80% correction in the 2013 cycle just to get ~ 2. to recover.300% by the end of the year. Will history repeat itself? “.

In short, investors need to be careful in both cases.

You can see the BTC price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page