In a chart comparison created by Quartz Media, it would appear that Bitcoin has a chance of a much quicker revival from the current price correction compared to that of 2014.
The charts are based on the December 2013 to January 2015 correction and movements from December last year to the current date. When the previous chart is compressed it appears to match current price movements, only in a much shorter time frame.
In the 400-day period covering 2014, the price of Bitcoin dropped by 80 percent and was the worst in history at the time. There was a four-month prolonged period which saw the price return to previous support levels before the eventual decline.
The recent decline of 70 percent has taken less than 200 days compared to the 300 days it took back in 2014. This accelerated decline indicates a much faster correction period should it follow a similar pattern.
Price trends between the two graphs when altering the 2014 graph to account for the difference in velocity shows an almost identical pattern. It does, however, predict a further decline before we see any significant support. Should it follow the same pattern and see support between $3000 and $5000 then we may see an 80 percent+ recovery soon.
In an interview with CNBC on June 30, BitMex CEO Arthur Hayes stated that BTC could see $50,000 before the end of this year. Although, conservatively, somewhere around $20,000 is also possible.
Regulatory action has been a large factor in price corrections this year, both positively and negatively, and that effect may continue. EFT approval from the SEC could be a big indicator of positive price movement going forward.
However, recent history has shown that the possibility of an unexpected negative effect as a result of regulation is just as likely. The ongoing threat of thefts and exchange hacks also continues to present potential problems.
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