History and statistics show that Bitcoin will return to $ 19,000 this year
by John Smith LearnerThe summer heat has once again warmed up the Bitcoin exchange rate, but will this push be as strong as two years ago? To answer this question, we tried to find a connection between the BTC rate in the summer of 2017 and the summer of 2020.
Why it is important to consider dependencies
Over the entire history of the existence of cryptocurrencies,
analysts have drawn figures that show that each fall of the main coin by 70% or
more is accompanied by its further growth of at least 5 times. Following this
pattern, the next minimum price peak before a deep correction will be at the
level of $ 100 thousand.
The “Cycle of Moods” described by Justin Mamis came under the
cryptocurrency market capitalization chart, which once again proves Bitcoin's
cyclicality.
It is also known that in trading there is a seasonal
cycle, and the spring-summer period is considered sometimes when the coins
strengthen. If history repeats itself and it is proven, then why not find
out if the growth of BTC 2017 is similar to the growth of 2019?
The
heat begins in spring
The previous rise in bitcoin began in the spring,
when the rate rose from $ 1,200 in April to $ 2,300 by June 1. This year
we saw something similar - an increase from $ 5200 to $ 8800 over the same
period. At the same time, market capitalization in 2017 increased from $
20.8 billion to $ 38.3 billion, and in 2019 from $ 93.4 billion to $ 152.2
billion for the segment under consideration.
If you look at the whole segment from the end of
April to the end of August, we get the following figures.
- 2017: $ 1,200 - $ 4,600 (an
increase of 3.8 times).
2019: $ 5300 - $ 10,000 (1.9 times increase).
Capitalization:
- 2017: 21 billion - 76 billion
2019: 94 billion - 179 billion
BTC
correlation
Correlation is the dependence of quantities on each
other. In our case, this is the current rate of bitcoin and the sample of
2017. If we assume that there really is a relationship between them, then
we can make a rough forecast of the Bitcoin exchange rate and determine when it
will again return to $ 19,000.
For this, we need not only summer figures, but also
autumn and winter ones. From September to the peak of 2017, the rate rose
from $ 4,600 to $ 19,000, respectively 4.1 times, i.e. growth rate in
autumn remained almost the same as in summer (3.8 and 4.1).
Accordingly, for 2019, we will leave the figure 1.9 times. In this case, it turns out that if Bitcoin maintains its current growth rate, then by the end of the year we will return to $ 19,000 again. Here is such a cycle.
Sponsor Ads
Created on Feb 24th 2020 04:50. Viewed 270 times.