Home
News
- Bitcoin’s once bullish trends seem to be taking a u-turn exhibiting “island reversal.”
- An increasing number of Bitcoin tokens are exiting exchanges weekly.
- Analysts predict prices in the range of hundreds of thousands per coin.
November 2020, when Bitcoin surpassed $14,000, top crypto analyst Charles Edwards commented, “the train has left the station,” and he wasn’t wrong. The Bitcoin train was more of a rocket traversing upwards at an accelerated pace until now.
Bitcoin (BTC) seems to be losing its momentum, prices now exhibiting an “island reversal.” Stats suggest the worst has yet to come. But what exactly is an “island reversal”, and how is Bitcoin related to this? Is it some geographical island?
Bitcoin? Island? Reversal?
Investopedia explains, ‘island reversal’ is a price pattern of candlestick charts, where on a daily chart, gaps separate groups of days showing compact trading activity within a range of prices. The pattern implies a reversal of the current price trend, bullish to bearish or vice versa. In the case of Bitcoin, performance has been bullish since March 2020, but the current dropping rates suggest its reversal to a bear market.
As depicted at the end of the first trend, preceding the bunch of price clusters is an initial price gap. Going by the pattern theory, the gaps left behind won’t be filled for a while.
Analyzing the CME BTC Futures chart, a top crypto technical analyst, @Pladizow on Twitter, was the first to spot the island reversal. But, for how long will the depicted Bitcoin island left behind stay deserted?
Is the Condition Beyond Repairable?
A macroscopic view of the Bitcoin price chart gives an overview of all BTC patterns and curves.
Bitcoin is exhibiting island reversal when indicators are finally turning down, the short-term parabolic curve has been violated, and a bearish wedge has formed on higher time frames.
On the other hand, fundamentals are bullish, with increasing BTC exiting exchanges weekly. A selloff might be able to scare the stronger hands into selling their coins.
The Crypto-market is Still Pretty Unpredictable
However, this isn’t the end; if anything, the world’s best analysts are predicting even higher prices in the range of hundreds of thousands per coin.
Then there is also a possibility of another parabolic curve, which hasn’t fully developed yet and even with all such deviations, still concludes the predominant bullish trend to be intact.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
