Bitcoin Is Apple On Fast Forward:
Its no surprise that Bitcoin’s recent drop from $20,000 directly resembles Apple’s drop from $100/share back in 2013. We say its not surprise because both are overly hyped tech. I mean all you have to do is take Bitcoin’s chart and divide everything by 200, you’ll get a replica of Apple’s Chart. Don’t believe me? Take a look for yourself. Here is Apple’s chart back in 2013, tell me if you can spot the difference between the chart below and Bitcoin’s current chart:
From the graph above, we all recognize the nice head and shoulders pattern displayed by Apple back in 2013. By middle of 2013, Apple’s stock had dropped nearly 50%. The trend did not reverse until we saw a double bottom pattern at around $50/share (Apple’s share price was different back in 2013 as Apple underwent a forward stock split). You will see in the next picture that Bitcoin is following the exact same chart pattern, the only difference is that Bitcoin is on fast forward. Apple’s chart is in days, while Bitcoin’s chart is in hours.
Notice that the proportions are almost identical. Bitcoin’s price dropped as low as $10,700 on Bitfinex from a high near $20,000. Bitcoin’s price has since recovered to around $14000. As we saw with Apple, the downtrend did not reverse until a double bottom was formed. As we write this article, Bitcoin’s price is on its way down from $14000. Bitcoin’s could still be forming the right shoulder of the head and shoulders pattern, or it could be on its way to sketching out a double bottom pattern. Either way, we will have to wait and see if Bitcoin will continue to follow Apple’s 2013 price action.
When Apple bottomed out at around $50/share, it has since climbed to $175/share. If Bitcoin is to follow that same chart pattern, it would put Bitcoin’s price at around $35,000 in the near future.
So What Are We Saying?
To sum things up, we think that the same people that have traded or are still trading apple are also trading Bitcoin. We also think that Bitcoin traders are behaving in a similar way as they did with Apple back in 2013. With that in mind, we predict that Bitcoin’s price will bottom out in the range of 8000-10,000 USD before rallying again. We are also predicting that Bitcoin will hit $35000 per Bitcoin in the near future (possibly by the end of 2018) if Bitcoin is to follow in Apple’s footsteps.