Hold on to your cryptocurrency. Science has got a reason.
2021 began with a massive triumph for Bitcoin investors. However, the year was as volatile as successful, leading to drastic dips that have now turned a large number of believers into skeptics. While the future of Bitcoin is highly unpredictable given the recent turn of events, one thing is for sure — the world will never be able to buy Bitcoin again at these prices. This might be the last time we are watching the most popular cryptocurrency at prices as low as these. And there is a scientific explanation for this reasoning.
Bitcoin prices depict a mathematical pattern, as researched by Crypto Capital Ventures, that is also seen in art pieces like Mona Lisa, money markets like the stock market, and even in numbers and music. This fascinating mathematical phenomenon can help us tell that unless there is a total and absolute ban on Bitcoin all around the world, its value will only continue rising in a pattern.
BITCOIN AND THE FIBONACCI EFFECT
The price movement of BTC has been studied by experts to form the golden spiral or Fibonacci effect and is still continuing the trend. The first time the Fibonacci effect appeared in the price movement of Bitcoin was in 2012 and since then, the long-term trajectory has continued.
This trend displays the similar bear and bullish patterns the repeat every time at a similar point. In the image given below, the green rectangle zone depicts the starting points of a bull market. These rectangles are breached every time in a similar fashion after halving. The first bullish rectangle appeared in Nov 2012 followed by July 2016 and then May 15, 2020.
So what do this graph and the green rectangle sequence tells us? According to the Fibonacci effect, every time the price level of Bitcoin leaves this bull market door or the green rectangle, it never comes back to the same level again.
The last key support price- in simpler terms, the highest price of BTC in the current Fibonacci spiral — was $26,500. The current price of BTC i.e. $13,000 to $16,000 is the bull market door. This price range of $26,500 to $16,000 is the range that we will never see again according to the pattern.
This support price, right before the market sets off for rallying high, is defined by the golden ratio of 1.618. To understand it better, let us explain to you what the Fibonacci effect is.
WHAT IS THE FIBONACCI EFFECT?
Fibonacci sequence is one of the most mysterious mathematical phenomenon that has been observed not only on Earth but all around the universe. It is a sequence of the sort where one number is equal to the sum of the two immediately preceeding numbers. While this might sound like the types of number that can be found in the series of numbers, this sequence is actually found on random places in the entire universe.
This mathematical wonder comes with another mysterious extension which is the golden ratio. Assume two entities A and B. Add A and B and then divide the sum by A. If the ration comes out to be equal to the ratio of A and B, this it is called golden ratio. Surprisingly, in the Fibonacci sequence, the two numbers are always the same which is approx 1.618.
This mysterious phenomenon can be found in sea-shells, ocean waves, hurricanes, flower buds, spider webs, and even cosmos. Famous paintings like Mona Lisa and the Last Supper also depict the Fibonacci application.
This is now found in the price mechanism of Bitcoin. Following the technique of Fibonacci retracement method, one can almost certainly predict what the future of the cryptocurrency would be like.