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Bitcoin, the world’s largest cryptocurrency, has stayed around the lower $30k to mid $40k price range for more than a month. This range is expected to remain Bitcoin’s “new home” for the foreseeable future. Furthermore, as our latest study revealed, the crypto asset’s price is expected to consolidate lower below the $41,500 barrier mark.
Bitcoin has not seen a “upward rally” or a “uptrend” in recent days. In the middle of the death cross story, the aforementioned words have grown somewhat estranged from the community. Nonetheless, there is cause for celebration.
The “Magic” of the Golden Ratio
A pseudonymous analyst recently highlighted that after every downtrend (encapsulated within the red region), whenever Bitcoin’s price has shown signs of recovery, it has broken past the 1.0 Fibonacci level (light green line). Next, its price has only surged beyond 1.618 or the ‘golden ratio’ (dark green line). The market has then always used the same level as support to further continue its uptrend.
What’s more, after retesting the aforementioned level, the crypto has always gone to touch its genuine cycle top. Commenting on similar lines, the analyst added,
“Every cycle, Bitcoin recovers from its previous bear market, then exceeds the recovery by 61.8% on the downside (market at 1.618).”
The analyst went on to add,
“Every cycle, after exceeding above the 1.618, BTC has tested this level for support before 🚀 (surging).”
For the time being, Bitcoin’s price has struggled to effectively maintain a break beyond the $40k mark. At the time of publication, BTC has dropped by more than 4% in 24 hours, with the cryptocurrency valued at $35,638.
Interestingly, all prior sell-offs finally drove Bitcoin towards the golden ratio, and the price has been affected by its “magic.” According to the current market environment, Bitcoin has already surpassed the 1.618-level, as seen by the chart. Looking at historical precedents and bearing in mind Bitcoin’s cyclical nature, a rise from this level appears to be fairly plausible. Overall, the ‘golden ratio’ may function as a bottom for Bitcoin before the next rise begins.
Well, even though an uptrend is on the cards, there is no surety of when it will exactly happen. However, the analyst went on to contend,
“This Bitcoin Year of the Bull is not over. Much more to come – and the price will go much higher.”