Since the SegWit2x proposal was suspended, bitcoin has been seeing some pretty rough price action.

After hitting a high just under $8,000 per coin, it retraced all the way down to $5,500 (ish) over the following days.

Since that time it has bounced fairly significantly off those lows, sitting currently around $6,500 per coin.

The question now on everyone's mind is...

What will Bitcoin do next?

I'm glad you asked!

For some clues as to what bitcoin might do next, the first thing we can do is look at bitcoin's previous trading history and see if there can be any kind of patterns gleaned.

What do you know, there is a pattern indeed!

If you look at the trading history of bitcoin throughout this past year you can see that each time bitcoin has dropped by 20% (or more), it has rallied by 62% (on average) over the course of the following 4 weeks.

Check out the data:

In the more immediate term, we can see that every time bitcoin has fallen by at least 20%, we can see that it rallies roughly 28% over the next 2 weeks.

Yes, I know that this is a small sample size, but it's interesting never the less.

It remains to be seen what happens this time as bitcoin fell by more than 20%, but so far the price action seems to be lining up right along with those averages.

The bull rages on!

Bitcoin has been on a major bull run all year. 

I would imagine any kind of positive developments regarding the scaling debate or any positive news about futures products being officially launched before the end of the year could be the catalyst for the start of the next bull run.

In the mean time I am hoping we see a bit more consolidation back down to the $5,000's before I put more capital to work, but that may just be wishful thinking on my part.

We will see!

Hope you enjoyed this little stat and make sure you make your own trading decisions, never based solely on what you read here.

Stay informed my friends.

Sources:

https://www.cnbc.com/2017/11/13/after-a-plunge-bitcoin-typically-soars-in-next-few-weeks-data-shows.html?

Image Sources:

http://thecomedyspot.net/question-mark/

https://www.cnbc.com/2017/11/13/after-a-plunge-bitcoin-typically-soars-in-next-few-weeks-data-shows.html?

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