Could Bitcoin Price Drop Like It Happened in 2018?

Could Bitcoin Price Drop Like It Happened in 2018?

If we apply similar data from 2018, bitcoin price is threatened with a sharp decline.

According to an analysis by Crypto Bullet, Bitcoin’s current price chart bears many similarities to that of late December 2018. If a similar chart from 2018 repeats, a BTC decline is likely $25,000 will appear this year.

Currently the price Bitcoin tends to track a head and shoulders top (IH&S), a technical indicator that shows a strong reversal is imminent.

In 2018, Bitcoin reached 2 peak values ​​in April and May with a value of approx 10,000 won USD. But in July of the same year Bitcoin Price Drop suddenly fell down 6,000 won USD.

Between October 2021 and February 2022, Bitcoin is also showing signs of going through a similar price trajectory as it did in mid-2018. Notably, the chart produced two consecutive highs in the last year, near 65,000 won USD in April and 69,000 won USD in November, after which the price corrected downwards 33,000 won USD Early February 2022 and in the process of making another IH&S chart.

Basically, the IH&S is an indicator that shows a bullish reversal Bitcoin A breakout to the upside is now expected 50,000 won USD. Similarly, Crypto Lark market analyst Lark Davis has also created a Bitcoin indicator that predicts a possible price breakout. 60,000 won USD Return.

However, Cointelegraph believes Bitcoin’s bullish expectations will be exceeded 50,000 won USD can be a trap for investors. If the price falls below the red line, Bitcoin can go down 25,000 won USD this year.

An exponential moving average (EMA or Exponential Moving Average) is an exponential moving average for observing price movements based on recent data. The EMA has many finite correction points compared to the simple moving average (SMA or Simple Moving Average).

Before the price saw a sharp reversal in 2018, Bitcoin had a breakout to the mark 10,000 won USD. Then the price of Bitcoin quickly took the 50-week exponential moving average (EMA 50, red wave) as support. When analyzing EM 200 weeks (green wave), the price keeps falling and hits the mark 3,000 won USD. This is also the bottom of Bitcoin in December 2018.

Applying the same indicator to the ongoing price action, Bitcoin could end up in the 50,000 area above the 50 EMA – 60,000 won USD. However, it is more likely to return below the red wave and extend the decline towards the line EM 200, circles nearby 25,000 won USD.

On the plus side, Bitcoin is proving to be more bullish than 2018. The price of Bitcoin rose from below 4,000 won USD in March 2020 to 69,000 won USD in November 2021. This breakthrough growth comes after Bitcoin attracted more investment firms and an economy suffering from high inflation.

According to data from CoinMarketCap, on the evening of February 17, bitcoin price suddenly took a beating 42,000 won USD and continued its sharp decline this morning. The Bitcoin price is currently still trading at the lower level 41,000 won USD and no positive factors appear.

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