Bitcoin has seen one of its steepest corrections in months. It has seen only one of a few pullbacks since the uptrend began. However, the cryptocurrency has a unique perspective on its long-term price chart. Accordingly, this shows that another bear market may be coming if the asset’s volatility decreases over time.
Bitcoin drop idea
The idea is based on the President’s cryptocurrency in terms of market capitalization. It thus reaches the apex of a logarithmic growth channel. In addition, this channel is drawn by an analyst whose predictions are extremely accurate. Let’s take a look at this unique take on the upcoming bitcoin price action.
Bitcoin hit nearly $60,000 over the weekend. A few days into the week’s start, it fell as low as $45,000.
The source of the drop is a whale transporting 28,000 BTC to the Gemini crypto exchange at a cost of $1.6 billion.
The sell-off is one of the deepest corrections the cryptocurrency has seen since last March, when the price fell over 70% in a matter of days. But where is the top of the current rally?
According to the logarithmic growth curve drawn by analyst Dave the Wave, the peak of this cycle may be near. By comparison, another bear market is almost as close.
Beware the Bear
Using the accurate model, Dave the Wave assumed that the base of the bear market was real . So why couldn’t the same model predict the peak? When the top of the current uptrend hits the top trendline of the logarithmic growth curve, the range to the near-term high is very narrow.
Historically, whenever bitcoin price touched the top trend line, a bear market ensued. If, for some reason, Bitcoin encounters stronger selling than the current correction, a bearish phase has technically already begun.
In any case, the daily growth curve shows some form of correction after such a sharp rise.
As Dave the Wave explains, the slope of each loop is adjusted for a 33 degree tilt. If the one-on-one angle trend with the current correction, Bitcoin will bottom when it eventually falls back to $20,000.