Silver vs Bitcoin Bubble Analog

In our BTC vs SLV analog piece we identified remarkable similarities within the charts. Trying to figure out the time frame of the consolidation area is key. In SLV , the timing of that consolidation period was over 3 months, however, the 500% rally also took 2.5 years. In BTC , the 500% rally only took ~9 months. With this scaling in mind, the consolidation period in BTC may be closer to ~1 month than 3. Any clues as to WHEN the next move occurs is critical when it comes to trading BTC Derivates, because in options, timing is everything!

In the first week of December, we had compared the two charts stating that BTC was in a consolidation period that, if correlated on the same time scale as the SLV bubble, would break the interim lows of ~$3,200 between 1–3 months. We believe this thesis still remains intact which could mean seeing a break of the lows in the coming weeks. A 25% selloff in BTC from the current lows of $3,200 would be to roughly $2,400. If this occurs, we believe new institutional players will enter this space to start reallocating their assets and resources into Cryptocurrencies. Since BTChas first-mover advantage and name recognition, we think this would be the coin that “Wall Street” uses as an avenue to invest in to get digital asset exposure.

Over a month ago, we came out with an analog piece comparing the Silver bubble of 2011 to the most recent bubble of BTC . In the first week of December, we had compared the two charts stating that BTC was in a consolidation period that, if correlated on the same time scale as the SLV bubble, would break the interim lows of ~$3,200 between 1–3 months.

We believe this thesis still remains intact which could mean seeing a break of the lows in the coming weeks. A 25% selloff in BTC from the current lows of $3,200 would be to roughly $2,400. If this occurs, we believe new institutional players will enter this space to start reallocating their assets and resources into Cryptocurrencies. Since BTC has first-mover advantage and name recognition, we think this would be the coin that “Wall Street” uses as an avenue to invest in to get digital asset exposure.

Tim Kelly
Founder and CEO
tkelly@bitooda. io

Brian Donovan
Executive VP of Institutional Sales
bdonovan@bitooda. io

Dr . Ilya Kurland
Chief Derivatives Strategist
ilya@bitooda. io

About BitOoda
BitOoda is a digital asset advisory firm specializing in trade execution, market analysis, and risk management.

For business inquiries, please e-mail info@bitooda. io

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