The value of the leading crypto asset bitcoin has fallen over 53% from its all-time high of $64k, to a low of $30k on May 19. While bitcoin is still down 25% during the last 30 days, it is difficult to predict where the value of bitcoin is going from here. However many people take advantage of tools such as the Golden Ratio Multiplier, Fibonacci sequence, logarithmic growth curves and the infamous stock-to-flow (S2F) price model to predict future bitcoin valuations.
Predicting the boom and bust of bitcoin with numbers
Most people cannot predict the future and when it comes to bitcoin (B T c) and the crypto economy, in general, busts and booms are common. Also, except for a few occasions such as specific news that shocks investors, the fluctuations are sometimes unpredictable. However, there is a plethora of technical analysis tools, charts, and models that help a large number of people get ahead of the game.
For example, fans of technical analysis take advantage of its perspective. Golden ratio and Fibonacci sequence To predict future bitcoin valuations. Essentially a trader will apply mathematics to things like the value of bitcoin and the moving average. The Golden Ratio is also known as the Divine Volume, Divine Ratio, Number Fei, Extreme and Average Ratio, and the Golden Number. Essentially in the “science of quantification”, two quantities reach a mathematical divine section when their ratio is equal to the ratio of their sum.
The golden ratio is equal to 1.618 and is not only used in mathematics, but is also reflected in architecture, geometry, and many natural elements. Then there is the classical example of mathematics called the Fibonacci sequence, which is a sequence of quantities where a number is the sum of the last two quantities starting with 0 and 1. Gold ratio multiplier Hosted on LookinobitCoin.com The multiplier gives a detailed description of how the major crypto asset works. Bitcoin (btc).
The website notes, “The state of the adoption of bitcoin and the market cycle to understand how price can behave over a medium to long timeframe.” “To do this it uses multiples of the 350-day moving average (350DMA) of the price of bitcoin to identify areas of potential resistance to price movements.” Lookintobitcoin.com adds:
The multiplier 350DMA consists of its number of days rather than its value values. The multipliers refer to the Golden Ratio (1.6) and the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13, 21). These are important mathematical numbers. These specific multiplications of 350DMA have been very effective in choosing intracyclic highs and major market cycle highs for the price of bitcoin over time.
The Golden Ratio Multiplier, as applied to bitcoin price forecasts, was Called by philip swift When he published an article on the subject on June 17, 2019 Article Title: “The Golden Ratio Multiplier: Unlocking the Mathematically Biological Nature of Bitcoin Adoption”, helps a trader gain a greater perspective on multi-year cycles.
“The article begins with how the 350-day moving average has acted as a pivot for the major market cycles of bitcoin – once we exit, a new B T c Bull Run Begins, ”Swift tweeted two years ago. Swift continued:
New insights begin when that critical moving average is multiplied by prime numbers: the golden ratio (1.618) and the numbers in the Fibonacci sequence (1,2,3,5,8,13,21). By doing this we are able to select almost all major intracycle price highs in Bitcoin’s history (colored lines) and each market cycle top (dotted line). Look at the 2015–17 Bull Run as a clear example of MA multipliers that act as the dominant resistance on intracyclic highs.
Numerical sequences of bitcoins such as Fibonacci Poetry and Nautilus Shells
Of course, not everyone agrees to use the golden ratio and Fibonacci sequence to predict bitcoin’s ups and downs. For example, the open insurance platform Nsure Network. K Alvaro Fernandez Commented: “Historically it seemed to be respected, but how much can you trust it? We can also pass through accumulation higher first. Other critics believe that the use of the golden ratio and the Fibonacci sequence is no different from using tarot cards.
Despite the doubt, Swift’s bitcoin tool Golden Ratio Multiplier is highly respected and used by innumerable technical analysts. The golden ratio has been in use since the time of the ancient Greeks and many believe it is deeply connected to the universe and nature. like the golden ratio, Invention of Satoshi Nakamoto Is a well-known and irrational technique by design. Interestingly, Bitcoin’s epic price rise since first traded has closely followed the Fi and Fibonacci sequence patterns.
Like the Golden Ratio Multiplier, the pioneering asset has briefly followed up with the “Natural Long-Term Power-Law Corridor of Growth”. Harold Christopher Burger. Burger Publish A Detailed article Which discusses the logarithmic growth curves of bitcoin. Like Swift’s Golden Ratio Multiplier, logarithmic growth curves can also give a trader an idea of when they can expect volatility and specific time frames. But these devices reportedly Dismissed on occasion And the golden ratio is often considered a fairytale.
Similar to the Nautilus shell, bitcoin prices are often associated with the Golden Mean and Fibonacci sequences. Nautilus shale is often compared and is associated with golden proportions, but Contrast research And further views say that the golden ratio is not a good example of the logarithmic spiral found in the famous shell nature. Studies show that nautilus shale has a phi ratio but follows a 4: 3 ratio.
What do you think about using the gold ratio and the Fibonacci sequence to predict bitcoin prices in the future? Tell us what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Vicky Commons, lookintobitcoin.com,
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