The 2022 bear market was brutal as more than $2 trillion in value was wiped away from the crypto economy. In addition to missing benchmark values, the crypto winter has managed to break a number of popular Bitcoin price models such as the rainbow price chart and the popular Plan B stock flow model. Moreover, since May 11, 2022, it has also broken the well-known power law corridor model or logarithmic growth curves diagram, and drifted below the lower band for about 86 days.
Deviation from the norm: Bitcoin’s 2022 bear market breaks some of the most popular price patterns
For many years now, cryptocurrency traders have made use of tools, charts, and models to predict the future value of Bitcoin (BTC) and other common digital assets. Bitcoin.com News has written about the Plan B stock-flow (S2F) price model on numerous occasions and in 2021 the S2F model was fairly accurate until the end of November.
In addition, many bitcoins rely on charts and other price models such as the golden ratio multiplier, Fibonacci sequence, rainbow pattern, and logarithmic growth curves. During the last quarter of 2021, bitcoin traders expected BTC To reach $100,000 per coin by the end of the year.
In September 2021, when BTC The price swap was between $45,000 and $50,000, Blockware Solutions principal analyst Will Clemente tweeted about a new price model he called the “Ill Liquid Supply Floor.” At the time, Clemente said that the model combined Glassnode’s illiquid supply data with the S2F Model of Plan B and said that it created a floor price for bitcoin based on BTCReal time scarcity.
The minimum value that Clemente predicted was $39,000, and over time, the analyst’s illiquid supply floor model broke. Even after the “worst-case scenario” forecast for Plan B veered at the end of November, the pseudonymous analyst said he was confident that the price of bitcoin was still “on its way toward $100,000.”
None of these bold predictions came to fruition, and in the midst of the start of the crypto bear market, these types of price patterns were publicly mocked them It was denounced by many people in the cryptocurrency community. The show’s liquid floor wasn’t solid, S2F broke, and people laughed at the popularity “Rainbow” price index.
You have created a new and improved template for your rainbow chart pic.twitter.com/zgjbqQtOb1
– LevelsDennis.lens (levelsdennis) June 19, 2022
The People’s Power Law Corridor model recorded a break of 86 consecutive days from the norm
Moreover, one of the most popular bitcoin price models, known as the power law corridor model, or logarithmic growth curves chart, has also been broken since May 11, 2022. The chart is preferred because BTCThe price schedule can be seen from A logarithmic perspective. In fact, a record price chart It is one of the most famous and traditional financial technical analyzes in the crypto world.
Charts of Bitcoin’s logarithmic growth curves are hosted on encrypted web portals like lookintobitcoin.com And the coinglass.com. The current deviation is unusual such as BTCIts price fell below the lower band only twice in history prior to 2022. The first deviation was a rapid event in October 2010, and the second most noticeable deviation occurred on March 11, 2020.
March 11, 2020, otherwise known as “Black Thursday,” was an interesting day for every asset on the planet as financial markets shuddered across the board. at that time, BTC It broke below the $4K range, and the move fell below the low development line on the logarithmic growth curves chart.
This specific event did not last long as global markets rebounded from the initial panic of Covid-19, and a bull market occurred almost immediately. Bitcoin price rose to the $64,000 region in April 2021, and above that range to $69,000 on November 10, 2021.
Nine months later, bitcoin (BTCThe price is down 66% from its all-time high of $69K, and the popular and often reliable logarithmic growth curve pattern has been broken for 86 consecutive days. While BTC It saw the first rally in the bear market, and the price still has ways to go back to the lower band of the power law corridor.
For the price to do so now, the price needs to be just above the $35,000 range. Bitcoin price has never broken below the lower band line for a long time, which is unusual when you look at it BTCPrice cycles that lasted 13 years. The break shows that markets often follow specific mathematical laws, patterns, and patterns, but these types of technical approaches don’t always look right.
At the moment, the recent bear market rally and other factors suggest that a bottom is quite likely in this particular crypto winter, but since charts and signals like this have broken in the past, it means that no one can really guarantee that the bottom of the crypto market is at .
What do you think of all the bitcoin price patterns that have broken in the past? Tell us your thoughts on this topic in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, lookintobitcoin.com, Twitter, bitcoinwisdom.io,
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