The current price trend of Bitcoin (BTC) is closely aligned with the US stock market during the Great Depression from August 1929 to March 1933.
According to a cryptocurrency trader, the trend in the US stock market in 1930 was very similar to Bitcoin's price trend in recent weeks.
Bitcoin price trends are showing a bigger pullback
As the global pandemic is spreading rapidly, high-risk assets have begun to decline in both dynamics and volume.
Investors are rushing out of individual stocks, cryptocurrencies and even gold to keep cash in front of uncertainty over how long the pandemic will last.
From a technical perspective, the Bitcoin price rose to $ 6,950 and was immediately pushed back. The failure of this resistance has led to a significant increase in the number of sell orders in the range from $ 6,800 to $ 7,200, causing strong selling pressure in the cryptocurrency market.
If the price of Bitcoin followed the fractal indicator of the US stock market in the 1930s, some traders expected the currency to fall below $ 3,000.
In trading, fractal is a term used to describe candlestick patterns that show trend reversals in the market.
A target of $ 2,500 to $ 3,200 matches our analysis PentarhUdi - a famous Bitcoin trader on TradingView, who has predicted many full market cycles over the years.
Considering $ 2,400 USD as Bitcoin's new bottom, PentarhUdi wrote:
“I have a goal of reducing prices from $ 1,800 to $ 2,500. In this case, the 200 SMA weekly will be broken down and become resistant. It takes a lot of time and effort to break up and turn it into a support. ”
Trader further emphasized that it is fear in the global financial market that is amplifying interest in high-risk assets.
“In the context of global financial turmoil, Bitcoin price strongly attacked the 200 SMA and the bottom triangle line of the previous chart. I think this may not end as well as I thought. Because of the great potential of global market price reduction. ”
The volume is decreasing rapidly
As of last week, major futures exchanges like BitMEX have witnessed a significant decline in volume.
After the price of BTC fell below $ 3,700 on March 12, BitMEX began recording cash outflows as traders massively withdrew their money.
Over the past 5 days, the spot market has also begun to see a noticeable drop in volume, which indicates that the bulls are unlikely to be able to prevent a drop to the previous low.
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According to U.Today
Translated by ToiYeuBitcoin
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