- October 31, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Is The Bitcoin Rally Over? Here’s What Historic Patterns Suggest appeared first on Coinpedia Fintech News
As the cryptocurrency market approaches the holiday season, analysts, including Crypto Jebb, are drawing parallels between current Bitcoin trends and historical patterns observed in 2017 and 2020. At this time of year, Bitcoin was previously hovering just below its all-time high of $20,000.
Over the past seven years, Bitcoin has frequently broken through resistance levels, but the current situation resembles only one previous instance—late 2020—when the cryptocurrency surged following the onset of the COVID-19 pandemic and substantial monetary stimulus from the Federal Reserve.
During that period, Bitcoin experienced a breakout, reaching $65,000 within six months after initially struggling around the $20,000 mark. Although Bitcoin recently reached a price of $73,700, inflation has impacted comparisons to past highs, prompting analysts to suggest that recent price movements should be viewed in the context of currency devaluation.
Currently, expectations are high for Bitcoin to find support around the $70,000 mark. Analysts expect a pattern similar to 2020, where a small correction might occur followed by a more significant pullback. If historical trends hold, this could lead to another test of the all-time high in the near future.
New Highs or Sideways Action?
Jebb described the current market dynamics as a “change of character,” a term from Lux Algo’s terminology, which signifies a transition in market behavior. He explained that Bitcoin has experienced two major phases in the last six months: a corrective phase followed by a bullish breakout from a falling wedge pattern.
As the market moves rapidly, Jebb warned that Bitcoin cannot maintain its parabolic uptrend indefinitely. A sideways trading period is likely, during which Bitcoin may either consolidate or experience a sharp surge toward new highs, potentially reaching $80,000 to $90,000.
