Is It Time For Bitcoin To Let Price to Continue to Skyrocket Or Regulate It?

Bitcoin prices have currently reached a range starting from $16000 and the market is at the point of deciding what happens next? Will this massively rising bull trend continue or will there be some regulations to reduce the price of the cryptocurrency? The bitcoin prices have doubled over the last month, creating a situation which most market analysts would describe as ‘bubble territory’. The growth of prices has been so rapid that it has been able to break ahead of a parabolic trend to create an aggressively augmented parabolic shape which is known as ‘hypodermic trend’. Let us look at the statistics and decide whether this trend will be sustainable or is it the right time for some corrections to be made.

The illustration above represents a parabolic curve which has been guiding the bitcoin market, until recently. Within the parabolic curve, we can see a strengthened linear channel, represented by purple, which has been providing reliable support and resistance through most of the growth of bitcoin prices. The bitcoin prices were able to break out of both the linear and parabolic curve to form a hypodermic trend due to the strong growth in its prices as observed at the end of November 2017.

In the figure above, we can see a red line. This line represents a massively aggressive support line which helped to steer the price out of the parabolic curve. By the time this article is being written, certain individuals are keeping notice of the trading range within close contact and observing how it nears the hypodermic trend. A diminishing trend of demand for bitcoins can be represented by a breakdown below the hypodermic trend and it could lead to local demand for BTC-USD exchange. Along with this breakdown, we could associate a breakdown for the trading range, represented in blue, which has a range of an approximate value of $5000. The breakdown of such an immense trading range could result in a significant market reaction leading to massive correction in prices before bitcoin buyers return to the market.

On the other hand, before we jump to the conclusion of the worst possible scenario, we must keep it in the back of the head that distribution and reaccumulation phases are quite identical and often described as ‘evil twins’ of each other. The probability that bitcoin prices will rise further is quite how but judging from similar price rise of other currencies similar to that like POA Network and NEO and products in history it is more likely to go through a phase of correction and result in a fall in price.

Leave a Reply

Your email address will not be published. Required fields are marked *