Many analysts try to make accurate predictions of the trend ahead by relying on the historical price cycles of different assets. The Bitcoin market is no exception, and looking at the past cycles of this digital currency, one can predict its price to some extent.
News in the report The latter raises the question of whether time can play a key role in recording the historical peak of the market. Evidence suggests that the digital currency market is more affected by time. For example, December is of special importance. History shows that the market has reached its peak or peak this month.
The price of bitcoin has been stuck between $ 30,000 and $ 35,000 for some time. This area has confused investors; Because they can not predict with certainty the fluctuations in this digital currency. It is worth noting that in the last 15 months, the price of Bitcoin has been on the rise in most cases. However, the last three months can be considered a turning point in the market.
At the moment, the market conditions are such that it can not be said with certainty that the peak price of Bitcoin has been recorded. In fact, the current situation is more like the middle phase of the uptrend cycle, or in other words, the fourth wave of the five waves of the market cycle. In such cycles, the fifth wave is accompanied by an unprecedented leap.
One analyst has used sine waves to predict prices by publishing a graph. This chart shows each peak and floor recorded in December.
In fact, every December we see a historic event in the price of bitcoin. The first time the price of Bitcoin reached $ 1,000 was in September. A year later, the price of Bitcoin fell below $ 200 by 80% in September and fell to the bottom of the trend.
Two years later, in December 2017, Bitcoin peaked again, and then we saw the beginning of another downturn. The end of that downtrend was in December. In December 2019, we also saw a temporary floor. After registering this floor, the price of Bitcoin fell below $ 4,000 on Black Thursday (March 29).
By December 2020, the price of Bitcoin had risen to a record high to conquer its resistance. Since then, prices have fluctuated above this range.
Given the above sinusoidal diagram, it can be said that there is a possibility of recording another peak in the diagram; This means that the $ 60,000 peak we have seen before is just a normal ceiling and cannot be considered a real peak.
It should be noted that sine waves have repetitive behavior and are therefore one of the most important topics in mathematics.