Bitcoin's price action since 2017 has many similarities with the Nasdaq after the Dot-Com bubble







Measured from an all-time high of December 17, 2017, the price of Bitcoin has been adjusted to 819 days. The reduction is significant, when the price has lost nearly 63% of the value. This movement is very similar to what happened to the Nasdaq in the dot-com bubble of 2000.


The famous trader CryptoCapo compared the current price movement of Bitcoin with the Nasdaq in the dot-com bubble of 2000, and outlined the emotional phases of the market cycle. According to him, maybe the $ 3,800 low created on March 13 is the lowest for Bitcoin price in years to come.



So does the BTC price move according to what happened with the Nasdaq after the 2000 dot-com bubble? Let's analyze the chart below to find out.


Nasdaq


The Nasdaq reached a high of 5,132 points in March 2000. After that, it fell rapidly, and lost 78.59% of its value over the next 944 days, when it dropped to 1,108 points in October 2002.


Then the price started to move up. In October 2007, it hit a high of $ 2,871, coinciding with the Fib 0.5 of the previous decline. According to the tweet, this is most likely a "skeptic" level of investors. The subsequent decline brought the price to a final low of $ 1,265, reached in March 2009. Prices have increased since then.


It took 2,344 days for the price to move from the first bottom to the second bottom. In addition, the monthly RSI has created hidden bullish divergences during this period.


Nasdaq-bitcoin


Bitcoin


Bitcoin price reached an all-time high of $ 19,667 on December 17, 2017. After that, the price began to fall, losing 83% of its value over the next 364 days. This makes it hit a low of $ 3,122 in December 2018.


Prices began to rise thereafter, reaching a high of $ 13,764 in June 2019, right at the 0.5 Fib level of the previous decline. This movement is identical to the Nasdaq. The subsequent decline led to a low of $ 3,850 on March 11, 2020.


The interval between the two lows created is the main difference between these two movements. The time between these two lows is 455 days in Bitcoin's movement, about 1.3 times higher than the time it takes for the price to drop from an all-time high to the first low, at 364 days. In contrast, this rate is more than 2.5 times in the Nasdaq movement, almost twice as large as Bitcoin.


Additionally, Bitcoin's weekly RSI did not create a hidden bullish divergence during the formation of these two lows.


Therefore, in order to increase investor confidence, the RSI must be lower than it was reached in December 2018. However, a drop of Bitcoin below $ 3,200 will be Disable this ability.


At the moment, the similarity of these two charts still exists, and it is likely that Bitcoin's price action will reflect Nasdaq's activity after 2009.


Nasdaq-bitcoin


conclude


The price of BTC has been falling since reaching an all-time high in December 2017, this decline has many similarities to the Nasdaq after the dot-com bubble event. For the similarities to remain valid, the BTC price must be kept above $ 4,000. If successful, Bitcoin will have a long-term bull run.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Sn_Nour


According to Beincrypto








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