In recent years, digital asset cryptocurrency has become one of the most popular assets among investors and finance managers. As of July of this year, the value of Bitcoin and Ethereum has attracted serious attention.
By referring to historical data analysis, in early September of 2017, Bitcoin has reached the highest price of $5,000 at the time. During that period of time, Bitcoin encountered strong resistance at this price level and showed a downward adjustment to re-test the previous high price (about $3,100). Then, starting from this price level, people were surprised to see that Bitcoin continued to soar in the next three months, eventually reaching a historical peak of nearly $20,000 and a price increase of more than 520%. We found an interesting phenomenon, from the downtrend line in early May and below the 200-day moving average, a laddered pattern has formed. In the highest ladder, the decline is close to 19%. It is then followed by a slight increment in the next few days, and then another decline in the ladder, hit a 21% drop. The third ladder continues to follow the first two modes, with a drop of nearly 19%, and then rises slightly, approaching the downtrend line. The downtrend line and the top level support of $5,000 are pushing the wedge into lower prices. For most investors, last year’s high of $5,000 was a huge psychological bottom price. (Read more…)