While several Bitcoin investors and enthusiasts tend to keep a close eye on its value, few experts forecast its worth with the help of fractals. One such uncannily accurate fractals indicate that the price of Bitcoin will fall by 25% in the coming weeks.
A fractal of the leading cryptocurrency has been monitored by famous crypto trader NebraskanGooner for the past few months. Bitcoin has tracked this fractal, the source of which is obviously the 2014/2015 bull run and ensuing bear market, “almost since I started watching it in September.”
BTC’s recent price activity was aligned with the fractal, including the 42 percent leap witnessed late last month. If the fractal continues to hold its heat, Bitcoin could sink by the end of the year to the $6,700 point, marking a 25% decrease from the current $8,500 value. A fractal, however, is when the price action of an asset is seen during a different time, in the sense of technical analysis and financial markets. This method of analysis is not so popular, but in analyzing Bitcoin it has proven to be somewhat useful.
The fractal is not the only sign for Bitcoin’s having to fall further. Using past NewsBTC data, the Hash Ribbons — a metric that measures the hash rate of Bitcoin’s wellbeing — just saw a bearish crossover. While this may not imply anything in and of itself, the Ribbons’ bearish convergence was last seen “just before Bitcoin broke down in November 2018 from $6,000 …TL;DR this is a bearish signal.” Cryptocurrency analysis company Bytetree reported that “Bitcoin Network failing to maintain short-term amounts, falling back to an average of $2Bn per day for 12 Wks.” They proceeded to report that their patented Market Health Signal remains in “bull mode”:
“Long term transaction volumes are steadily declining, velocity remains below the critical 600% level and short term NVT continues to signal caution.”
However, these calculated estimates discussed above might become true but the actual worth of the Bitcoin depends on the regulations as well. For instance, if the regulatory authorities approve the Bitcoin trading in the countries where it is banned, it is highly likely that its value will increase. But if the regulatory authorities take strict measures and discourage citizens to trade in Bitcoin, its value is supposed to fall.
One such example is that of a US Securities and Exchange Commission (SEC). The president of SEC categorically announced that the Bitcoin cannot make its way to the major exchanges until better regulations are devised. Moreover, SEC advised the Bitcoin investors to refrain from investing until it is made available on stock exchanges. This affected the value of Bitcoin then. Such actions taken by the regulatory authorities have resulted in Bitcoin’s volatility in the past and is likely to take place in the future as well.