• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers
bitcoin charts

Bitcoin Indicator Reaches Historical Extreme: Price Sheds Two Thirds Upon Reversal

Tony "The Bull" by Tony "The Bull"
3 years ago
in BTC
Reading Time: 3 mins read

Bitcoin price this week reached a high of $19,500, following a six-week, 60% rally. From the moment the first-ever cryptocurrency made it above $12,000, on 3-day timeframes, there were twelve consecutive green candle closes without any red.

The extreme bullish impulse caused one specific technical indicator to reach the highest reading in history – reached only three times prior, all before 2014. Each time, an average correction shaving two-thirds off Bitcoin’s price took place after momentum finally turned downward. Will a historic selloff follow this previously unstoppable rally?

Bitcoin Price Corrects Hard Following Failed Retest Of All-Time High, But More To Come

The price per BTC nearly doubled since the start of September, setting off an explosive FOMO-driven rally that has only just come to an end.

The cryptocurrency went parabolic after breaking back above $12,000 and news that PayPal would be supporting cryptocurrencies. But failure to break its all-time high sent Bitcoin falling back down hard to refuel.

Related Reading | Bitcoin Rally Isn’t Just Institutional Driven, Emerging Markets Are Voting For Revolution

The run up caused the Fisher Transform technical indicator to reach one of four of the highest readings in the cryptocurrency’s just over decade long history.

Interestingly, the extreme deviation of 7.5 or more hasn’t taken place since prior to 2014, back when few even knew what a cryptocurrency was or had heard of Bitcoin. But looking back at these past examples could indicate that a very dangerous situation is brewing.

bitcoin fisher transform zoomed

The Fisher Transform has reached the highest reading in its history for the fourth time ever. | Source: BTCUSD on TradingView.com

Fisher Transform: An Overcorrection Could Be Due For The First Ever Cryptocurrency

During the very first Bitcoin bull market ever, the Fisher Transform indicator reached such an extreme reading three times. The first time the asset ran hot, resulted in a 48% pullback.

The second caused a full 80% retracement, and the third ever started the first Bitcoin bear market between 2014 and 2015 after an initial 64% drop. Now, the signal is back, and by taking the average of the three corrections and extreme readings, an estimated two-thirds could come off the price per BTC.

bitcoin fisher transform zoomed

Past corrections suggest that cryptocurrency is about to correct hard. | Source: BTCUSD on TradingView.com

Bitcoin bull market corrections during the last cycle only reached between 37% and 38% on average. During the first bull market, the average was closer to 64%.

The two bull market correction ranges could provide potential targets for where any downside might reverse. The first of the two targets reside right where the bullish breakout took place at $12,000.

The second, with a 64% retrace would take Bitcoin price back to $7,000 per BTC. As extreme as it sounds, the cryptocurrency is known to overextend in both directions. After the gains of 2020, a sharp move could play out.

bitcoin fisher transform zoomed

A full 64% correction is possible, or will it be the 37% average from last bull market? | Source: BTCUSD on TradingView.com

The midway point of the two targets is also a likely scenario, residing at around $9,200 and would fill one of the remaining CME gaps left behind on the Bitcoin futures chart.

Related Reading | Search Engine Marketing Data Reveals Highest Retail Interest In Bitcoin Ever

Whatever the eventual target, buying the dip successfully could be the most profitable play in Bitcoin history.

Featured image from Deposit Photos, Charts from TradingView.com
Tags: bitcoinbtcbtcusdBTCUSDTcryptoFisher Transformtechnical analysis
Tweet123Share196ShareSend
Tony "The Bull"

Tony "The Bull"

Tony is the “always-on” Editorial Director and Head of Research at NewsBTC, leading a talented team of writers and editors across several different global time zones. Tony is also the founder of CoinChartist.io – an educational website focused on crypto trading. Partners include Elliott Wave International, TradingView, and more. Tony’s background includes an extensive, award-winning media production career and over fifteen years of publishing operations and management. In the past, Tony has founded several media websites and his content has been read billions of times. Past clients include the BBC, Fidelity, and many others. Tony "The Bull" is a level 3 CMT student (passed level 1 & 2), technical analyst, Bitcoin supporter, and avid speculator. He owns a python named Satoshi. Tony longs for the day when money is separated from the state. Tony is deeply fascinated by core market principles such as Elliott Wave Theory as they tie into mathematics like Fibonacci ratios. Market timing though DeMark indicators, Ichimoku, Gann tools, or Hurst Cycle Theory are also of key interest. Tony provides completely original content driven by exclusive, independent research. For more insights and education from Tony, check out his free TonyTradesBTC Telegram channel. Follow @TonyTheBullBTC on Twitter. You can also follow @CoinChartist_io on Twitter and subscribe on YouTube.

Related Posts

Bitcoin

Bitcoin Price Trims Losses But Key Breakout Resistance Is Still Intact

3 hours ago
Bitcoin

Bitcoin Price Nosedives Below Support As Bears Target $25K

1 day ago
Bitcoin

Bitcoin Price Topside Bias Vulnerable If It Continues To Struggle Below $28K

2 days ago
Bitcoin

Bitcoin Price Faces Confluence of Bearish Factors And Could Decline Heavily

5 days ago
Bitcoin

Bitcoin Price Takes Hit – Upsides Turn Attractive To Sellers

6 days ago
Bitcoin

Bitcoin Price Nears Next Key Move, 100 SMA Is The Key

1 week ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    6 days ago
  • Willing to buy new crypto: Here are the best 10...

    7 days ago
  • Best Crypto Meme Coin Presales in 2023

    7 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Crypto Enthusiast Considers TMS Network (TMSN) A Great...

    1 hour ago
  • Kava vs. AltSignals. Which Token Has a Better Chance To 10x...

    1 hour ago
  • Investors Troop To Sparklo (SPRK) Amid Binance Coin (BNB)...

    2 hours ago
  • Can Mooky.io Outpace Dogelon Mars (ELON) and Big Eye Coin...

    12 hours ago
  • Is Mooky the Next Breakout Star after the Impressive Gains...

    12 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.