Bitcoin (BTC) may have hit highs of $60,000, but calculations suggest that the price level will matter much more to bears, not bulls.
In a tweet on Oct. 14, popular Twitter account TechDev again highlighted historical data that has so far accurately tracked Bitcoin’s highs and lows.
How about an 80% BTC price crash to… $60,000?
While BTC/USD is tipped to retake all-time highs and climb to six figures this year, investors’ attention is already turning to how far Bitcoin will fall after its next blow-off top.
The idea that BTC price action moves in cycles — with a bearish phase and a bottom of 80% of the blow-off top — has become widely accepted.
What is much harder to believe in current circumstances, however, is that $60,000 may just be the price floor of that potential 80% correction.
Using Fibonacci sequences, TechDev showed that each Bitcoin bear bottom fell within an identical range. This accounts for both the sub-$200 lows in 2014 and the roughly $3,200 floor in December 2018.
Given Bitcoin’s cyclical metamorphoses, the next logical retracement, therefore, has anywhere from $47,000 to $60,000 as a target.
“I know no one cares about macro during a pump. But the last two BTC bear markets bottomed in the 1.486-1.618 log fib pocket of the previous cycle,” he commented.
“Suggests the next bear bottom is 47-60K. If that’s where we land after an 80-85% fall… The math gets fun.”