Could Post Crypto Bubble Bitcoin Follow Dot Com Crash NASDAQ Chart?

Tony "The Bull" Severino

5 years ago

3 mins read

bitcoin crypto nasdaq dot com bubble crash

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The crypto bubble and Bitcoin’s meteoric rise often gets compared to past bubbles, such as tulip mania, or the dot com crash.

But could Bitcoin’s price chart actually be following an echo-bubble fractal found on NASDAQ’s price charts from after the dot com bubble burst?

Bitcoin Following NASDAQ Post Dot Com Collapse Fractal

The leading cryptocurrency by market cap, Bitcoin, took the world by storm in 2017 when the crypto asset reached an all-time price of $20,000 exactly two years ago today.

Since then, the crypto bubble popped, resulting in Bitcoin falling by over 80% to its eventual low at $3,100, while the rest of the crypto market and altcoins fell in value by as much as 99% in some cases.

The cryptocurrency bubble has drawn comparisons to a number of past bubbles, but a direct comparison with the post-dot com collapse price chart of the NASDAQ stock index shows a price pattern that looks somewhat similar to the price action playing out in Bitcoin markets currently.

Little hopium for my bullish followers.

While I have posted plenty of scenarios showing a drop to 1300, I trade btc level to level.

Right now, I think its important not to get too complacent.

Could absolutely find out btc follows the Nasdaq's lead after the dot com bubble. pic.twitter.com/IGI4n28G43

— A Voice of Reason in a Sea of Insanity (@sometrader78) December 16, 2019

After the dot com bubble burst, NASDAQ crashed in value by as much as 80% of its peak price, just like Bitcoin has. Once the asset bottomed, it grew nearly 3 times in value at the height of a following echo-bubble rally.

Once the echo-bubble peak was reached, though, the fractal similarities between NASDAQ and current Bitcoin price action became even more convincing.

Following some consolidation directly below the echo-bubble peak, the asset suffered a significant drop, followed by a powerful rally that acted as a bearish retest of former support turned resistance.

If it sounds familiar, the same bearish retest and powerful rally occurred in Bitcoin at the end of October, when Chinese President Xi Jinping spoke out in support of blockchain technologies. This news-driven pump resulted in Bitcoin’s third-largest single-day gain in the asset’s history.

But the entire rally was later wiped out in a continuation of the current downtrend.

What Happens Next to Crypto After It Bottoms Once Again?

If Bitcoin continues to follow the same post-dot com NASDAQ pattern, the first-ever cryptocurrency would suffer a sharp and violent fall from here, taking the crypto asset down another 30-40% toward the last remaining diagonal trendline, located around $5,000 to as low as $4,800 currently.

The good news is that after the asset found a bottom once again, it went on to embark on the greatest bull run the world has ever seen – one that is still going even today, nearly a decade after the initial collapse.

Should Bitcoin follow that same course, the crypto could eventually reach prices of $100,000 to as much as a million dollars per BTC, as some analysts are predicting.

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.