Crypto

Over the past few months, the cryptocurrency sector has been plagued with headlines of huge corporations going insolvent and losing their investor's funds. Such as Three Arrows Capital, a Singapore-based hedge fund that held a huge presence in the crypto space going insolvent while still in substantial debt.

Although BTC has found temporary support at approximately $20,000 the odds are stacked against the world’s oldest cryptocurrency finding a true bottom at this price point. Currently, as of 3 PM, ET Bitcoin is trading at around $20,600, which is where we entered our last trade, which unfortunately ended in a loss last week when on Friday Bitcoin’s intra-day high exceeded $22,000.

Bitcoin has resumed its downward trend and as of 4:45 PM, ET is trading lower by almost $1,300 or (-6.38%) at $18,880. It broke through support which was the 2017-2018 high of $19,660 and seems destined to trade to the 2019 high at $13,880.

“We are in the midst of the fifth of these parabolic cycles. The first rule has already been met when in December 2020, we traded above the previous record high ($20,00), and the monthly candle doubled in size. However, the final two characteristics point to the possibility that Bitcoin has yet to fully correct from the current record high in the market.

Bitcoin seems like it could have made its bottom seeing as it did hit our minimum target of $17,770 which represents the 78% retracement and has had a slight bounce off that level. The retracement used stretches from the lows of the covid crash ($3,825) to the all-time high ($69,000).