The Bitcoin market has crashed once again. The bulls were hoping that it would remain intact and stable over the weekend to set off another bullish wave. However, the tailwinds of favor have flipped switches once again on the flagship cryptocurrency. The market has corrected and reset for price at $32,000. This downward movement is not a good sign, and it has triggered a new parabolic indicator.
The Parabolic SAR indicator was first developed by J. Weller Wilder. It allows the investors to measure the direction of movement for any asset class. The traders use this index to move their stop losses up or down based on the results. The recent readings of the Parabolic SAR index dictate that Bitcoin might be going for broke based on the historic analysis available for the flagship cryptocurrency.
Bitcoin is Moving Down, and there are Chances for 75% to 80% Correction in the Marketplace
The year 2020 was not a great one for many people and most businesses. However, for crypto markets and Bitcoin, it presented the perfect opportunity. The increasing danger of inflation, decline of fiat, and the deadbeat movement of gold made way for the mass adoption of Bitcoin. High net worth individuals rushed to buy more Bitcoins before others.
Meanwhile, venture capital firms, hedge funds, institutional trusts, and other traditional financial entities started to take an increasing interest in accumulating more Bitcoin holdings. As a result of this massive demand, the flagship cryptocurrency moved from under $4000 to above $64,500. It also allowed the first crypto exchange platform, Coinbase, to transform into a public listed company. However, it seems now that the parabola for Bitcoin has peaked and gone to projectile towards gravity.
In the 2018 bull run, veteran trader and economist Peter Brandt claimed that the Bitcoin market is all set for an 80% correction. He depended on the results from Parabolic SAR to make these predictions. In less than a year, his ominous predictions turned into reality. The bear market hit Bitcoin prices with an 84% correction. It can take beacon coin to $10,000.
Looking at the present statistics, it can be said that Bitcoin is bound to repeat history. Every time this indicator is triggered, it has resulted in a major loss for Bitcoin. The largest recorded correction has been recorded as low as 86% downtrend. If the level was not hunted intentionally, it would confirm that another market correction can occur in the same fashion as predicted by Brandt in the past.
