The market is causing some PTSD to traders who have gone through the dump all the way back in May 2021. The current downtrend is eerily similair to the one in experienced in May. How can we use this to our advantage?
DISCLAIMER : This is pure speculation, there are not enough datapoints to take this theory as a fact. This does not mean that there is no credit or truth to the theory about to be presented.
#1 - Bitcoin Adjusted to Inflation - 2021 The sideways year
Bitcoin adjusted to inflation shows us that 2021 was a sideways year and this was the reason why most people were expecting Bitcoin to fall back down to 30k as the downtrend seemed like the obvious next root after the new ATH was reached. This movement was confirmed after we ran into a new Deathcross similair to the one experienced back in June/July.
#2 The DeathCross Theory
The coincidence is too uncanny to not take note of. The timeline between the ATH in MAY and the DeathCross in June took exactly 66 days in both periods to form. One can easily speculate that there is relationship between the previous DeathCross and Bottom back in July/August. If the distance between the deathcross and ATH is identical in both trends. Can we also assume that the difference between the Deathcross and Bottom will also be identical to the previous wave?
# The length of the downtrend
If we draw the same downtrend line that happened in 2021, we can notice that it almost perfectly fits the downtrend we are currently experiencing now. One can also speculate that the difference between the ATH and the bottom took exactly 100 days in 2021. Are we going to see the same situation play out again this year?
Conclusion
This is all speculation at its best, but the coincidences are too strong to ignore. There are other fundamental factors which might be influencing Bitcoins price, but we all know that Bitcoin has a way of surprising everybody when least expected.
What are your thoughts on these charts?
