The cryptocurrency giant is enjoying its value‘s bullish movement in the cryptocurrency market. It is holding its place firm against the bearish trend in the market and strongly holding its value above the support level of $7,000 and its value’s rallying is continued.
Furthermore, the signals show that the predicted a new parabolic movement for the bitcoin value perhaps reached already. Succeeding the move of Friday’s value through $6,400, we saw the enormous increase through the night first it reach $6,500, next $6,600, $6,700 and $6,800 decrease. The upsurge of the value had assisted bitcoin to above a net bottom-rebound of 122.69% and similarly the currency’s year-to-date performance to the increase of 83.69%.
This increasing value of the currency is attracting the traders to buy it and this new interest leads towards the parabola formation of the Bitcoin. This type of parabola formed when the currency’s value increases in the strong bullish movement and attracts traders and investors to invest in the currency.
In this type of parabolic phase, the people purchase because of the value of the currency increases. They only tend to care about the basics things that might or might not be the reason behind the increased price. And then all of a sudden the currency’s value changes and goes downs and the investors who bought the currency at the highest of the value experienced the excessive loss.
Bitcoin’s previous parabolic phases were in 2013 (the first two parabolas) and while another one occurred in the year 2019. Both time the market and traders experienced excessive loss of money. Even the experts are able to forecast the exact length and period of the parabolic movement. The longer period sets the value near the value of $20,000 as experts forecasts after observing too many of the bullish movements of the Bitcoin and to be cautious the long period parabola results in the longer correction.
For example, the parabolic movement of 2017 has lasted for 9 months and its corrections lasted for 12 months and more. On the other hand, the parabolic movement of 2013 lasted for the period of 11 months and the corrections lasted for the period 13 months. Alex Kruger, the virtual currency analyst also commented on this parabolic phase of the bitcoin:
“Last time BTC was this overbought (RSI) on a daily chart was December 6, 2017, with price at $13,700. Back then, a parabolic move ensued.” – stated Alex Kruger on May 11, 2019.
At this time in the market, Bitcoin is trading in the bullish trend and it is really attracting the traders or investors to invest in it and buy it and it could lead Bitcoin into the over purchasing region in the market. Particularly, when the value of the Bitcoin is touching the resistance level of $7,500 to $8000. But, Bitcoin needs an enormous correction point. As per the increasing value, Bitcoin’s decrease aim could close near the value of $6,000.