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Bitcoin’s 2022 Bear Market Breaks Most Popular Price Patterns in the Community – Featured Bitcoin News

The bear market of 2022 will be brutal as more than $2 trillion in value will be wiped out from the crypto economy. In addition to the record values ​​lost, the crypto winter managed to break several popular Bitcoin price patterns, such as the rainbow price chart and Plan B’s infamous stock-to-flow pattern. Moreover, since May 11, 2022, the well-known power-law corridor pattern or logarithmic growth curves chart has also broken down and deviated below the lower band for approximately 86 days.

Deviation from the Norm: Bitcoin Bear Market of 2022 Breaks Some Popular Price Patterns

For years, crypto traders have leveraged tools, charts, and models to predict the future value of Bitcoin (BTC) and other popular digital assets. Bitcoin.com News has written about Plan B’s stock-to-flow (S2F) pricing model on several occasions, and in 2021 the S2F model was quite accurate until the end of November.

Additionally, many bitcoiners consider other charts and price patterns such as the golden ratio multiplier, the Fibonacci sequence, the rainbow pattern, and logarithmic growth curves. In the last quarter of 2021, Bitcoin traders expect BTC to reach $100K per coin by the end of the year.

Rainbows, Log Charts and S2F: Bitcoin's 2022 Bear Market Breakdown of the Community's Most Popular Price Patterns
BTC/USD weekly chart by bitcoinwisdom.io for August 5, 2022.

In September 2021, when BTC was trading between $45K and $50K, Will Clemente, lead insights analyst at Blockware Solutions, tweeted about a new price pattern he called an “illiquid supply floor.” At the time, Clemente said the model combined Glassnode’s liquid supply data with Plan B’s S2F model and created a Bitcoin floor price based on real-time shortages of BTC.

Clemente’s predicted floor value was $39K and the analyst’s illiquid supply floor model broke down as time went on. Even after Plan B’s S2F “worst-case” prediction deviated in late November, the pseudonymous analyst said he’s confident bitcoin’s price is still “on track toward $100K.”

None of these bold predictions came to fruition, and amid the onset of a crypto bear market, price patterns like these openly mocked And condemned by many people in the crypto community. The illiquid supply floor wasn’t solid, S2F broke and people made fun of the popular “Rainbow” price indicator.

The popular power-law corridor model has recorded an 86-day consecutive break from the norm

Furthermore, one of the most popular Bitcoin price patterns known as Power-Law Corridor Pattern or Logarithmic Growth Curves Chart has been broken since May 11, 2022. Because BTC’s price timeline can be viewed from a logarithmic perspective. In fact, the log price chart is extremely popular in the world of crypto and traditional financial technical analysis.

Bitcoin logarithmic growth curves charts are hosted on crypto web portals lookintobitcoin.com and coinglass.com. The current deviation is unusual because the price of BTC has dropped below the lowest band twice in history before 2022. The first deviation occurred quickly in October 2010 and the second most significant deviation took place on March 11, 2020.

Rainbows, Log Charts and S2F: Bitcoin's 2022 Bear Market Breakdown of the Community's Most Popular Price Patterns
Chart of Bitcoin Logarithmic Growth Curves on August 5, 2022.

March 11, 2020, otherwise known as ‘Black Thursday’, will be an interesting day for every asset on earth as financial markets tremble across the board. At that point, BTC broke below the $4K range and the move dipped below the lower dev line on the Logarithmic Growth Curves chart.

This particular event did not last long as global markets recovered from the initial Covid-19 scare and an immediate bull market ensued. The price of Bitcoin soared to the $64K zone in April 2021 and reached its range of $69K on November 10, 2021.

Nine months later, the price of Bitcoin (BTC) is 66% below its all-time low of $69K, and the popular and generally reliable logarithmic growth curve pattern has broken for 86 consecutive days. Although BTC saw its first bear market rally, the price still has a way to go to return to the lower band of the power-law corridor.

For the price to do so now, the price would have to be above the $35K range. Bitcoin’s price has never breached below the lower band line and this is unusual when looking at BTC’s 13-year price cycles. A break shows that markets usually follow certain mathematical laws, patterns and patterns, but this type of technical approach does not always hold true.

Currently, the recent bear market rally and other factors suggest that a bottom is quite possible this particular crypto winter, but these types of charts and signals have been broken in the past, which means no one can really guarantee a crypto market bottom. in

Tags in this story

analysts, bear market, bitcoin, bitcoin (btc), black thursday, breakout patterns, btc, btc real-time shortfall, charts, illiquid supply floor, logarithmic growth curves, plan b, plan bs2f, power-law corridor model , price indicator, price signals, pseudo-anonymous analyst, pseudoanonymous analyst, rainbow price indicator, S2F, stock-to-flow, TA, technical analysis, Will Clemente

What do you think about all the Bitcoin price patterns that have broken out in the past? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the news lead at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com news about disruptive protocols emerging today.




Image credits: Shutterstock, Pixabay, Wiki Commons, lookintobitcoin.com, Twitter, bitcoinwisdom.io,

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