Bitcoin price this week reached a high of $19,500, following a six-week, 60% rally. From the moment the first-ever cryptocurrency made it above $12,000, on 3-day timeframes, there were twelve consecutive green candle closes without any red.
The extreme bullish impulse caused one specific technical indicator to reach the highest reading in history – reached only three times prior, all before 2014. Each time, an average correction shaving two-thirds off Bitcoin’s price took place after momentum finally turned downward. Will a historic selloff follow this previously unstoppable rally?
Bitcoin Price Corrects Hard Following Failed Retest Of All-Time High, But More To Come
The cryptocurrency went parabolic after breaking back above $12,000 and news that PayPal would be supporting cryptocurrencies. But failure to break its all-time high sent Bitcoin falling back down hard to refuel.
Interestingly, the extreme deviation of 7.5 or more hasn’t taken place since prior to 2014, back when few even knew what a cryptocurrency was or had heard of Bitcoin. But looking back at these past examples could indicate that a very dangerous situation is brewing.
The Fisher Transform has reached the highest reading in its history for the fourth time ever. | Source: BTCUSD on TradingView.com
Fisher Transform: An Overcorrection Could Be Due For The First Ever Cryptocurrency
During the very first Bitcoin bull market ever, the Fisher Transform indicator reached such an extreme reading three times. The first time the asset ran hot, resulted in a 48% pullback.
The second caused a full 80% retracement, and the third ever started the first Bitcoin