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Bitcoin: BARR Pattern suggests that BTC might have bottomed in 2018




Bitcoin's bottom bottomed suggests 'BARR pattern' being formed by BTC's prices
Source: Unsplash

A Twitter user suggested the formation of BARR [Bump and Run Reversal] Pattern, which suggests that Bitcoin already bottomed in the month of December 2018.

According to Twitter user @thalamu_, Bitcoin hit bottom on December 15, 2018, when the price of Bitcoin fell as low as $3,126 [BitMEX]. The user tweeted:

BARR pattern, as the name suggests, takes place in three phases; the first phase is where the price leads-in and the second is when the prices bumps, this is followed by a run. In a downtrend, the lead-in is a continuous downtrend, which will enclose a bump – a further dip in the downtrend. The run, however, will break the downtrend formed during the lead-in and continue to evolve into a bull rally. The pattern was discovered by Thomas Bulkowski.

Source: TradingView

The user also added that the pattern was still unfolding and there were possibilities where it could fail. He further stated:

“That said, combined with bullish fundamentals, adoption, and positive press, my leaning is still upwards.”

As seen in the chart, there were two weekly candles formed at press time, which were almost parallel to each other, signifying the sideways movement of prices; without further indication of the “Run-phase” of the BARR pattern.

In addition, the user tweeted:

“According to Bulkowski, the right move is to wait for a breakout. Imo that means 5.5k s/r flip but others are calling for 6.2. On the reverse, that means breaking below 4.6k if looking for a short. Anything in between is risky per this pattern… BARR bottom calls for 57% difference b/t low point and bump. At $3200 bottom on dec. 16, our current $5k support fits that narrative to the T. ((3200*.57)+3200)=$5024)”

There are more than a few people who have predicted alternate theories, some of them allege that Bitcoin has already bottomed, while others allege that Bitcoin is yet to bottom, however, the bottom can only be confirmed in hindsight.

@SandmanXRP, a Twitter user commented:

“Combine that with donchian breakout method it starts to look interesting.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


Bitcoin’s volatility – an indication of growth or regression?

Biraajmaan Tamuly



Bitcoin's volatility indicated to be a key aspect of its current success
Source: Pixabay

Market volatility plays a huge role in the financial ecosystem of assets and cryptocurrencies are regularly linked to its predominant effect. Whenever Bitcoin exhibits a rapid price movement in the market, the majority of the critics tagged the digital currency with extreme volatility and state that it would eventually lead to its downfall, since crypto assets cannot be trusted on a long term basis.

This assumption was recently widely questioned as data showed that over the last few months, the volatility rate had actually decreased for Bitcoin but the community continued to talk against the coin’s development solely on the basis of the crash witnessed by BTC after the bull run of 2017.

Pierre Rochard, a bitcoin enthusiast, recently spoke about the situation and stated, that the volatility might actually be one of the reasons why Bitcoin was starting to find prominent success in the market.

It was suggested that Bitcoin had been accumulating value over the years through various implementations and at specific time frames, short-term traders were causing an effect on the price, which would cause the “incidental price surge”. The price surge would then undergo correction and witness a fall but the price would continue to grow at a progressive rate.

The aforementioned reason can be backed by the fact that Bitcoin had indeed outperformed the likes of commodities like gold in the recent market analysis, and it was released that Bitcoin attained more profit in the long-term returns and risks asset trade in comparison to the S&P 500.

A recent data also exhibited that since 2013, any investment that included 5 percent Bitcoin to 95 percent fiat currency gathered more returns and lesser risk than the S&P 500; which also witnessed losses in 2017.

Twitter user @1Mark Moss indicated that Bitcoin was growing at it’s natural growth rate and stated,

“The volatility is the difference between perception and reality. And the reality is BTC continues to progress, just not as fast as the perception makes it seem sometimes… just part of the natural evolution.”

However, another user @JordiMorris1 explained that the people had more to do with the volatility and anything else. He said,

“The relationship of people towards Bitcoin is volatile. Bitcoin is predictible by nature, its production is stable independently of how crazy people go about Bitcoin. No sense to blame on Bitcoin.”

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