The Bitcoin price has had a rocky start to the new week after losing its footing above $52,000 on Tuesday. However, all hope is not lost, as indicators still point to a continuation of this trend. Crypto analyst Tony The Bull has identified an important trend in the Bitcoin chart which could trigger a continuation of the trend back above $52,000.

Bitcoin 1-Week Fisher Transform At Crucial Point

In an analysis posted on X (formerly Twitter), the crypto analyst shared a chart that showed the Bitcoin Fisher Transform in comparison to price. Most importantly, the chart showed the 1-week Fisher Transform and how it has moved since 2017.

The analysis shows some similarities between the current trend and the trends seen in 2017. A similar trend was also seen in 2019 and 2021, where the Fisher Transform rose rapidly before falling. But the importance of this trend lies in where the Fisher Transform heads next from here.

The current important level is the 1.5 Standard Deviation, which has been a crucial point whenever this trend has occurred. Now, if the Fisher Transform is able to stay above this level, it is bullish for the price. However if it falls below this standard deviation, it is very bearish for the price.

Source: Tony The Bull on X

“This is a pivotal area based on historical price action and its exhibiting 2017-like behavior not seen in 2019 or 2021,” the crypto analyst explains. “Below it tends to incite bearish trends, while holding above gives bulls extra vigor.”

BTC price at $51,100 | Source: BTCUSD on Tradingview.com

Bears And Bulls Vie For Control Over BTC Price

The interest in the next direction of the Bitcoin price has seen bulls and bears lock horns over which camp will reclaim control of BTC. This has seen the price of the digital asset fluctuate wildly over the last few days, going from $53,000 to below $51,000, before bouncing back up once again in the early hours of Wednesday.

This tug-of-war continues to hold the price of Bitcoin down, but investor sentiment seems to be climbing even through this. According to the Bitcoin Fear & Greed Index, investor sentiment has reached Extreme Greed for the first time in one year.

Historically, the index going into extreme greed has signaled the top of the market, with prices trending downward not too long after. However, Bitcoin is still seeing positive indicators, with its trading volume rising more than 40% in the last 24 hours alone.

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The billionaire and CEO of Fisher Investments, Kenneth Fisher recently predicted that the upcoming year will experience double digits for the stock market, while the crypto industry will also continue its hype. In an interview with CNBC-TV18, Fisher noted that he still believes that crypto poses substantial risk to the financial systems, however, it is unlikely to become a potential risk in 2022.

“I do think it’s a potential risk, but I don’t think it’s a potential risk that is likely to be a problem in the year 2022. Probably afterwards.”

Amid arguing in favour of the stock market, levying its volatility to the ‘pre-price’ phenomenon, the anti-crypto billionaire maintained his stance on virtual currencies, claiming “these kinds of things burst”. Referring to the “burst”, he asserted that the bear market will steep lower and lower until it hits rock bottom and then some. Furthermore, Fisher only gave crypto a free pass for 2022 and emphasised that it may become a problem very soon if not next year.

“Normally these kinds of things burst. After you have already started what is a normal kind of a bear market. The bear market begins first, bear markets usually begin gently, not violently and then they get more violent later and in that later violent period that you usually see these kinds of things blow up and become potential real problems.”, Fisher told CNBC-TV18.

Crypto adoption 2021

While the world stands divided on the decentralised industry, crypto has proven itself several times over in 2021. From countries opting Bitcoin as legal tender to institutional giants running multi-billion dollar VC rounds related to crypto, the industry has outperformed as this year nears its end.

According to the 2021 Chainalysis Global Crypto Adoption Index, residents of more and more countries around the world adopted cryptocurrency use this year. Data collected from 154 countries’ index scores determined that as compared to the end of Q2 2020 when total global adoption stood at 2.5, saw unrealistic hike by the end of Q2 2021 with a total score standing at 24, suggesting that global adoption has grown by over 2300% since Q3 2019 and over 881% in the last year.