Bitcoin’s recent price surge and its sudden correction were the center of speculation and many conspiracy theories. Some of these theories speculated that institutional buyers set long trades before the pump and that the correction that followed the pump was sparked by WikiLeaks’ Julian Assange, who sold 4,000 BTCs worth approximately $20 million. The above-mentioned theories do not have any credibility to them however, and the only things that do are Bitcoin’s technicals and the past data that is observable and quantifiable.
The previous article about Bitcoin’s price movement addressed how Bitcoin will pump briefly and then go into a correction wave within 48 hours, which it did. This article details the movement of Bitcoin in the coming days and when it will bottom.
The Fractal Truth
The recent surge was a fluke and not the beginning of a bull rally, which is quite contrary to what most of the community thinks. The reason for this contrarian belief is the fractal nature of Bitcoin and the past data of other ‘bubbles’ that have occurred. Bitcoin is not the first bubble and it definitely won’t be the last. A few examples of other markets that have shown similar behavior as Bitcoin include the Gold market during the late 1970s and early 1980s, the Dot-com bubble, Qualcomm stocks, etc.
The charts attached below show the uncanny similarity between Bitcoin’s price movement and other markets.
Gold Vs. Bitcoin
Qualcomm Stock Vs. Bitcoin
Although the time frames across these markets are varied, they represent the same pattern. Kazonomics aptly explains this in “The Fractal Truth of Markets.” The article states,