Bitcoin [BTC] recently breached the $7,000-mark, creating a lot of spur in the crypto-community as the collective market rose to $200 billion in market cap. Tone Vays, a Bitcoin maximalist and analyst, shared his views on the current market scenario in a video on his official YouTube channel..
Vays stated that Bitcoin’s monthly charts looked positive as the prices continued to ascend. One of the discussions that had been relevant lately was whether Bitcoin [BTC] had bottomed or not. Vays said that if the bottom was in, the significance of Fibonacci Resistance was likely to prevail.
Fibonacci resistance levels are horizontal lines used to mark where possible resistance and support levels are. Each level is associated with a percentage which indicates how much the prices have retraced. The Fibonacci resistance levels are 23.6%, 38.2%, 61.8% and 78.6%.
Bitcoin [BTC] prices were scaled around the 23.6% Fibonacci resistance, which was surpassed during the recent price surge. Tone Vays emphasized on the 38.6% Fibonacci resistance and stated that if Bitcoin’s [BTC] bottom was in, the next major resistance was around the $9,442-mark.
He said that he drew the comparison between Bitcoin [BTC] and Gold to arrive at this conclusion. He added that it took gold a period of four years to reach the bottom from its all-time high and it took Bitcoin only a year. After gold bottomed, it surged again and reached the 38.6% Fibonacci resistance in August 2016, but was unable to breach it.
However, Tone Vays emphasized on the fact that the current possibility only made sense if Bitcoin’s [BTC] bottom was in and the market had entered another major bullish phase.