How A Hammer & The Golden Ratio Could Mean 6 More Months Of Bullish Bitcoin
August 04 2021 - 4:00PM
NEWSBTC
Bitcoin price is attempting to get back above $40,000, and with
that milestone out of the way, $50,000 and $60,000 next stand in
the way between it and another new all-time high. Although things
have taken a bearish turn over the last quarter, the next two
quarters in Bitcoin could end up being the most profitable yet, if
a recurring theme involving a hammer reversal and the golden ratio
results in a similar conclusion. Here’s a closer look at the chart
and what it could suggest happens from here across the crypto
market. The Recurring Hammer Reversal With Golden Results Bitcoin
is at a very unusual point it its market cycle. The bull run that
everyone expected to take the leading cryptocurrency by market cap
to prices well over $100,000 per coin has already potentially
fizzled out. Or at least that is how it looks to most observers.
Related Reading | Five Bullish Monthly Charts That Suggest BTC Will
Blast Off By most standards, a 20% crash in equities would cause a
“bear market” by definition. In crypto, the entire thing can
collapse by more than 70% and still somehow be bullish. And that’s
exactly what might have happened recently, as the Bitcoin price
chart now depicts a recurring bullish signal that has provided
“golden” results. If cycles are extending, there could be six more
months of bull market | Source: BLX on TradingView.com Bitcoin
Bull Market Could Extend Another 6 Months From Here The chart above
shows Bitcoin price over the last decade, along with each of the
three major boom and bust cycles we’ve seen so far. The most recent
took Bitcoin from $168 to nearly $20,000 at the peak. What is
believed to be the current rally, has taken a pause at around
$65,000 and sent the cryptocurrency reeling and crashing back to
$30,000. The support level since held, and on the monthly timeframe
a hammer Japanese candlestick has formed. A hammer is typically a
bullish reversal signal, happening as Bitcoin is well above its
former all-time high from the last cycle. Where support held is not
simply chosen by chance, but is the golden ratio of 1.618. Related
Reading | Fundamentals Suggest Cryptocurrency Is Massively
Undervalued Comparing past bull cycles, Bitcoin almost has always
held at the golden ratio of 1.618 and formed a hammer before
heading off to new all-time highs. With bull cycles lengthening by
one full month following each hammer reversal in the past, it
suggests that Bitcoin could have another six months of bull run
left. It also could mean that the top cryptocurrency will
eventually reach the high prices that have been predicted, and this
most recent downtrend was nothing more than a violent shakeout.
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC
Telegram. Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
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