It’s been over a month now. Bitcoin, the largest cryptocurrency in the world, is over $ 30 thousand and is pushing $ 40 thousand. This range will be Bitcoin’s “new home” for the next few weeks. According to Lavina Daryanani, the price of the crypto asset will consolidate further below the $41,500 resistance level. So what does this consolidation mean for the analyst? Let’s take a look at their comments.
One analyst recently highlighted that after every downtrend (indicated within the red zone), Bitcoin price breaks the 1.0 Fibonacci level whenever it shows signs of recovery. Then, its price only moved above 1.618, or the “golden ratio”. The market then always used the same level as support to continue the uptrend further. Moreover, after retesting the aforementioned level, BTC has always gone to touch the true cycle top. Commenting on similar lines, the analyst states that in each cycle, Bitcoin rebounds from the previous bear market and then the price recovers.
When we look at it, the price of Bitcoin has not successfully passed the $ 40 thousand level for now. At the time of writing, BTC has dropped over 4% in 24 hours and the coin was trading at $36,100. Interestingly, all previous sell-offs eventually pushed Bitcoin towards the golden ratio and the price was subject to its “magic”.
Dominant market scenario
Looking at the prevailing market scenario, Bitcoin has already surpassed the 1.618 level as shown in the chart. Looking at the past precedent and considering the ‘cyclical’ nature of Bitcoin, the possibility of an uptrend from this level seems highly probable. As a result, the “golden ratio” can act as Bitcoin’s bottom before the next uptrend begins.
According to the analyst, although there is an uptrend in the cards now, there is no certainty when exactly it will happen. However, the analyst continues to argue, pointing out that the Bitcoin bull year is not over yet. The analyst points out that much more will come, emphasizing that the price has risen to much higher levels.
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