Recent Bitcoin Top Shares Key Similarities With Black Thursday Plummet

2020-9-7 19:07

Bitcoin’s recent $2,000 crash sent chills down the spines of crypto investors, turning market sentiment from extreme greed to fear in less than 48 hours flat.

The sharp drop brought back all too fresh memories of the mid-March Black Thursday market collapse.

But before that crash turned into total collapse, there was a pause before the panic fully kicked in. A comparison showing current Bitcoin price action has made rounds around the web, prompting investors to fear the worst day in finance could soon repeat.

Let’s take a look at the recent comparisons, as well as some other shocking similarities found on higher timeframe charts.

Is a Repeat Of Black Thursday Just Days Away? Remembering The Shocking Day

February 2020 saw new highs in the stock market and a retest of $10,000 in Bitcoin. Weeks later, an over 30% fall in the stock market, and over 50% collapse or more took place all across crypto.

Nothing was safe from the madness – even relatively stable precious metals and forex currencies were crushed under the enormous panic-selling into the dollar.

After that, however, the weakest phase in the dollar’s recent history let these same markets recover to new 2020 highs. The recovery has been one for the record books, shocking analysts at just how inflated the stock market bubble has begun to get.

RELATED READING | HOW THE GREENBACK TURNED BITCOIN AND CRYPTO INTO A SEA OF RED

With the bubble just unwilling to burst under any circumstances, after such an enormous stretch of recovery, equities and Bitcoin have experienced their first significant pullback since the fateful day now dubbed Black Thursday.

The recent crash has shown some strange similarities between the two, prompting an image to make its way to the top of the Reddit r/cryptocurrency community. An image showing the below comparison highlights just how well the first fall before the Black Thursday plummet matches up with the current price action.

BTCUSD Daily Black Thursday Fractal | Source: TradingView

 

Ominous Bitcoin Fractal Could Lead To Violent, 54% Selloff

But that’s not the only similarity between now and then. The above chart depicts daily timeframes, but zoomed out to weekly price charts below, there is more to compare.

BTCUSD Weekly Black Thursday Fractal | Source: TradingView

The weekly “top” Japanese candle structure almost exactly matches the candle structure of the recent crash. After an extended uptrend, at the peak, there is a red and a green doji-like close, signaling indecision in the market about if it wants to carry along higher or retest below.

Both times, the market decided in a retest. Black Thursday, clearly didn’t hold at support. This time around, Bitcoin spent a full three months building a base at which it broke through $10,000 – could this have been enough to build support that holds through even pandemic-related panic that’s still prevalent today? And can it also hold strong even with the risk of the upcoming election?

RELATED READING | WHY THE UPCOMING US ELECTION IS BITCOIN’S BIGGEST RISK

Hopefully, that continues to remain the case, as another, similar drop would be deadly for Bitcoin. The last fall from the weekly candle close that started the violent collapse, dropped a full 54%. If price action continues to trace along, after last night’s weekly close, the cryptocurrency will fall sharply over the next two weeks to around $4,700.

BTCUSD Weekly Black Thursday Fractal Repeat Target | Source: TradingView

A collapse from $12,400 to $4,700 when crypto investors were expecting a breakout of the triangle would be brutal on the market. However, could such a move shake out any remaining “moon boy” mentality from the space, finally allowing the asset class to grow healthily and sustainably?

Featured image from Deposit Photos. Charts from TradingView.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 66250.57 (-0.12%)
Объем 24H $31.371b
Изменеия 24h: 0.08 %, 7d: 5.28 %
Cегодня L: $65194.83 - H: $66400.52
Капитализация $1305.1b Rank 1
Цена в час новости $ 10191.34 (550.07%)

thursday recent black market bitcoin hours flat

thursday recent → Результатов: 53


Bitmain’s Management Feud Is Finally Affecting Business Operations; AntMiners Shipments Delayed

The constant wrangling within the largest Bitcoin mining hardware producer – Bitmain – is taking a toll on its business and customer operations. According to a recent WeChat note sent on Thursday, the long-awaited hardware miners expected to be released in June and July will need to wait till September and October to be delivered. […]

2020-8-6 19:08


Novogratz Is Bullish On Bitcoin; As Galaxy Digital, Leads $20M Funding For Current Mobile Banking App

Galaxy Digital CEO, Mike Novogratz remains bullish on Bitcoin’s long term price while speaking in an interview with CNBC on Thursday. The bullish statements follow the recent investment in Current, a millennial and Gen-Z focused bank with a blockchain wallet, by Galaxy Digital, who led the $20 million Series B funding round. Mike further confirmed […]

2019-10-25 23:28


Фото:

Crypto Week In Review: Nasdaq Leads Regulation Talks, Legitimizing Bitcoin

Discussion about cryptocurrency-related regulation continued into this past week, as Bitcoin took the lead, driving the market up by just under 10% overall. Winklevoss Twins’ Revised ETF Gets Shot Down By The SEC On Thursday, the announcement of the most recent verdict regarding the Winklevoss Twins’ Bitcoin ETF hit headlines all across the industry.

2018-7-29 10:00