The bitcoin echo bubble is once again in the news! Many ace investors and bitcoin experts are of the view that Bitcoin is in an ‘echo bubble’. The technical-trading term has gained quite a following lately ever since prominent hedge fund manager Mark Dow used it to describe Bitcoin’s price movements. He went short on Bitcoin after it touched a high of $20,000 in December 2017.
Mark Dow recently tweeted a warning that Bitcoin will ultimately face a ‘grinding death’ after suffering from many FOMOs and spoofs with varying intensity and frequency. Bitcoin echo-bubble represents the perpetually decreasing price of Bitcoin after it peaked from 2016 to 2018. It means that the current price cycle is an echo of the 2017 bubble trend. Experts say this prediction is accurate since the virtual currency could still fall further.
Bitcoin echo-bubble can drop prices by forty percent, say experts
There’s no denying that Bitcoin could still head the wrong way in 2020 considering its fall from grace beginning late 2018. Interestingly, in the same year, the price moved in a parabolic fashion moving from its lows to make a new high of $10,000. Since then Bitcoin price movement is reminiscent of a descending triangle trend and hovers around the $6,000 mark. As per CryptoHamster, the Bitcoin echo-bubble findings have significant importance. They add that if Bitcoin moves as per previous cycles, it can very well descend towards $4,300 mark in 2020. That is a 40 percent fall from the current price! Interestingly, many bearish investors are also targeting a similar price range and shorting incessantly.
Can Bitcoin echo-bubble theory be wrong – bullish wave coming?
Even though analysts are predicting a doomsday scenario for Bitcoin, there are enough signals that Bitcoin price can perform positively in the months ahead. There are bullish signs on the horizon as well. Thomas Thornton recently observed a ‘Buy 13’ candle pattern in the charts indicating a bullish pattern. Other notable price reversal patterns have also been observed by other industry experts. However, such candle patterns were also reported at the peak of the Bitcoin bubble in December 2017. FizeekMoney also reported that Bitcoin chart is indicative of an upcoming capitulation very soon.