Bitcoin Price Could Collapse to $2,000 Based On Golden Ratio

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin price has failed to reclaim and hold above $7,000 and could retest lows set a month ago on Black Thursday.

However, if that recent low fails to hold, the first-ever cryptocurrency could fall to nearly $2,000 according to a mathematical figure that coincidentally is located at an untapped support level from past Bitcoin bull cycles.

Losing $7,00o Puts Bitcoin Price At Risk for Dangerous Drop to $2,000

After repeated attempts to push strongly above $7,000 and hold, bulls have now lost control over Bitcoin price action once again to bearish traders, hoping to short the cryptocurrency to new lows.

At the start of the year, Bitcoin price reached over $10,000, then in less than 48 hours plummeted to $3,800 on the day now known as Black Thursday – a day that set record-breaking collapses in the stock market, crypto, and much more.

The shocking selloff crushed hopes that Bitcoin’s halving would be a bullish event and caused even the most confident crypto investors to reconsider the asset class and give up on long-term valuation models.

Sentiment has now spent the longest stretch ever in extreme fear, all while Bitcoin price climbed above $7,000. But a failure to hold the level could push the asset back to retest recent lows, or perhaps even lower, according to math.

Can the Golden Ratio Be the Key to Predicting the Final Bear Market Bottom?

Many analysts believe that all future price movements can potentially be predicted using mathematics like geometry. But could the golden ratio be the key to timing Bitcoin’s elusive bear market bottom?

In trading, assets very often peak at or retrace to specific levels based on Fibonacci numbers, such as 0.382, 0.5, 0.618, and the golden ratio, 1.618. Nearly every peak in Bitcoin’s 2018 bear market peaked at 0.618, proving just how valid the theory can be.

According to the location of the golden ratio of 1.618, the psychological support level coinciding with the golden ratio puts Bitcoin price somewhere around $2,000 for the final bottom.

Interestingly, this level is also an untapped support level from the previous bull run – that took Bitcoin price to its all-time high of $20,000. The number is also a full 90% retrace from the all-time high, which is typical of past Bitcoin bull to bear market cycles.

It’s not fully understood as to why assets fall to these important mathematical ratios, but it remains a common strategy amongst crypto traders when planning entries or exits of positions.

If Bitcoin price does indeed fall to $2,000, given the fearful sentiment in the crypto space, few people are likely to buy the bottom, just like the last time it occurred at $3,200.

Then, trading volumes supported the idea that very few traders actually knife caught that bottom properly, also adding credence to the theory that “smart money” investors buy assets and “be greedy” when the market is fearful.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.