Most crypto traders think bitcoin requires practice to predict its price, but that is not actually the case…
For a long time, researchers and predictors have claimed that Bitcoin is a volatile currency. You might be hearing, its value has reached X Million or has crashed at Y Million and so on…
The volatile nature of bitcoin is not a risk at all for the active players of cryptocurrency. As of March 17, 2021, bitcoin was hovering around $55 million after crashing down from $60 million in a day. Most crashes in bitcoin occur on the weekend. However, today it is nearly $64 million.
The psychological threshold in crypto (or BTC) is based on the inimitable logic of bull marketers who try to drive it higher than ever. Again, it is all about capricious moves that Bitcoin and other altcoins never support.
Sometimes cryptocurrency goes up when tokens go up, but sometimes it goes down; sometimes peoples exchanges are similar to Tesla strategies, and sometimes they exchange it the way Gamestop does. In this dilemma, the only reliable signal is whether crypto goes up or down.
A pattern first revealed in the 12th century by Italian mathematician Leonardo Pisano, a.k.a. Fibonacci can be used to predict the future of currency, whether it is fiat money or digital currency. The mathematician derived this sequence through a rabbit breeding experiment.
The pattern, which is supposed to incorporate into a future prediction of crypto, is a Fibonacci sequence. Most of us already know about it. For those who are not aware of this sequence, here is what it is!
Fibonacci is central mathematics by nature, which dictates seashell’s spirals and the manner of flower petal’s growth. By understanding the pattern of these two, they can help predict bitcoin’s future price.
In Fibonacci, each new number in the sequence presents the sum of the preceding two numbers. It starts with 0 and goes 0+1 = 1, then 1+1 = 2, and 1+2 = 3 and so on… Precisely, it is 0,1,1,2,3,5,8,13, … up to nth number.
JC Parets, an expert in technical analysis of the market found a way to apply Fibonacci to Bitcoin in 2017. He blew our minds with the disclosure when he predicted the surpassing upcoming value of BTC. He predicted that BTC would initially surpass $6500 and then would rise higher than $7400.
Parets estimated this after segmenting the price movements of Bitcoin.
After the first crash of nearly 62% in BTC, he predicted that BTC would regain its value to 100% as of its old high. Further, BTC showed the chances to bounce off nearly 162%.
This prediction did not let BTC crash down to the previous level because it had to rise 262% under Fibonacci calculations. It is because the sum of the preceding two numbers is 262 (100+162 = 262).
As per these calculations, Bitcoin traded nearly $20 million and hit $30 million in the initial phase of 2021.
Afterward, Parets’ next prediction bounced $45 million, which was surpassed on February 8, 2021.
Today Bitcoin is holding above that level. Parets’ next target is $70 million, as per the Fibonacci sequence prediction.