History suggests Bitcoin will make a new all time high
A historically typical pullback and resurgence would see Bitcoin drop to $8,900, then shoot to $27,200.
The author of this post is Craig Cobb of Tradercobb.com, widely regarded as a top cryptocurrency trading educator.
TraderCobb has spent the last 13 years traveling the world, presenting to over 100,000 people and making amazing friendships with the world’s best traders, who he calls mentors, along the way. He has been featured on Forbes, investing.com and network TV, and hosts the "TraderCobb Crypto Show" which has seen the number 1 business and investing podcast ranking in over 9 different countries including the USA.
The recent astronomic run on Bitcoin has many asking if it's too late to enter and whether in fact Bitcoin will see new all-time highs in the not too distant future. So I decided to apply my 13 years of trading experience and bring you the results.
The first thing I need to do is look at the higher time frames for Bitcoin to establish what normal behaviour looks like.
When Bitcoin becomes bullish we tend to see 30% to 40% pullbacks. These pullbacks tend to also come into my "Cradle Zone" on the weekly time frame.
When calculated, we have an average pullback of 35.75% and all pullbacks have come into the Tradercobb "Cradle Zone". The Cradle Zone is the area around the 10 and 20 period moving average. The average move higher from the low of the pullback is a move higher of 207.25%.
So what do we get when we use these numbers on the current price chart? Well, first of all I need to draw in a 35% pullback from the most recent highs.
With a pullback of 35%, that puts the price at roughly $8,900. Now let me extend the 207.25% move higher from this hypothetical low should it happen.
This 207% extension higher puts the price at US$27,282 which is well above the current all-time highs.
Now keep in mind there is no hocus pocus here as well as no guarantees. This is using history to help to understand the environment that Bitcoin lives within. We are now in a weekly up-trend which is great as we can now start to look at the future. What we simply must have is a pullback and a proper one.
When I am teaching people to trade it's all about being patient and waiting for the right time to make a move. Do not fear a pullback here, people. It is required for a healthy market and we need at least one before we have a clear run to all-time highs.
Disclaimer: All predictions are for information purposes only, and reflect the author’s opinion. Their opinion may change over time. This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.