When it comes to Bitcoin, there are two schools of thought when it comes to price predictions – those who believe in technical analysis, and those who don’t. Technical analysts believe that price patterns repeat themselves, and by analyzing past price movements, they can predict future price movements.
The problem with this approach is that there is no guarantee that past price movements will repeat themselves. Some people believe that technical analysis does not work with Bitcoin because the market is too young and hasn’t had enough time to establish any reliable patterns.
On the other hand, there are those who believe that technical analysis can be applied to any market, regardless of age. They believe that because human behavior is fundamentally the same, price patterns will eventually repeat themselves.
Technical analysts who are bullish on Bitcoin point to the fact that the market has already seen a few major price cycles, and they believe that we are currently in the early stages of another one. They believe that the current bull market will eventually end, and Bitcoin will enter a period of consolidation before beginning another major uptrend.
So, does Bitcoin follow technical analysis? The answer is complicated. There is no sure way to predict where the market will go next, but those who believe in technical analysis say that it is a valuable tool that can be used to make educated guesses.
Only time will tell if they are right.