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As earlier observed, there was a high statistical coincidence that Bitcoin follows Avocado prices. The result? Avocado-based model first forwarded by Tracy Alloway, an Executive Editor at Bloomberg, sensationally hinting that prices of the digital asset were positively correlated to a tangible, unexpected fruit, the Mexican Hass avocado. According to her model, Bitcoin had more ground to lose as the prices of the two unrelated commodities were significantly mirroring each other. 

Bitcoin and Avocado

Although this synchrony was but a strange statistical coincidence, and another reason for Bitcoin price speculation, of which BTC is not short of, the decline of avocado prices seems to have spelled doom on Bitcoin prices. Blasted all over the media, the price of the world’s most valuable cryptocurrency is now trading at 6-months low. And kicker is that it could sink lower, but not Avocado prices.

Avocado is seen as a healthy fruit and Americans can’t get enough of them. Statistics indicate that the US imports over 750 million Kgs of the prized fruit to supplement homegrown volumes.

Avocado BTC prices
Global Avocado prices

On average, over 21 million Avocados are eaten every hour. This partly explains why despite earlier troubles, prices are up 10% year-to-date, trading at $2.93 per KG.

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Avocado Price South Africa
Avocado Price in South Africa

The demand is even higher in South Africa where it retails at $1.52, up 23.6% in the last month.

The Correlation is Broken

The correlation seems to have been broken after Mexico bowed to pressure, putting measures in place to curb the flow of illegal immigrants from Central America into the US. That decision alone eased pressure on Mexico’s green gold and prices rebounded after a slump, briefly mirroring that of Bitcoin.

The Trump administration had threatened to slap a 5% tariff on all Mexican imports if nothing was done to stem the flow of illegal immigration. Mexico deployed over 25,000 National Guard along its borders with the US and increased their raid on people traffickers.

Bitcoin’s Brightness

Bitcoin could be disintegrating and falling to unexpected levels, but there is a catch. Some weak miners have been shaken out but fundamental events will prop BTC prices going forward.

Key among them is the increasing economic uncertainty ahead of next year’s US election, Brexit and the US-China trade deal. Any geographic instability could shift capital to BTC, a censorship resistant digital store of value.

Summary

Do Avocado and Bitcoin (BTC) Prices Flow in Sync?

Article Name

Do Avocado and Bitcoin (BTC) Prices Flow in Sync?

Description

Is Bitcoin (BTC) price positively correlated with Avocado price?

Author

Dalmas Ngetich

Publisher Name

CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Dalmas Ngetich , 2019-11-25 16:04:59 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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