Bitcoin Looks Almost Exactly Like It Did Prior to the 2016-2017 Explosion

  • Bitcoin has seen a strong reversal over the past few days after it was once again rejected at $12,000.
  • The leading cryptocurrency now trades for $10,500, trading around pivotal technical levels.
  • BTC has yet to post a notable close above or below these pivotal levels, but traders are keeping a close eye on the charts.
  • One analyst argues that Bitcoin’s recent weakness is actually just par for the course.
  • He notes that from a macro perspective, BTC actually looks similar to where it was when it began the 2016-2017 exponential rally.
  • This is in line with a series of analysts who say that Bitcoin remains in a good spot on a macro time frame despite recent weakness.

Bitcoin Could Soon Surge if History Repeats Itself

Bitcoin is primed to begin a macro rally from here if history repeats itself, a recent analysis by a crypto chartist indicates.

The chartist shared the chart below on September 3rd. It shows that BTC’s about to bounce off a pivotal downtrend from the $20,000 all-time high.

While not identical per se, BTC completed a similar retest at the start of the previous bull run, where it retested the resistance of the $1,300 all-time high as support before rallying higher.

Should history repeat, BTC will not begin its bull run after it prints a clean bounce off current price levels:

“BTC weekly: 2015 -vs- 2020. Retest of descending trend line. After the successful 2015 retest, BTC ran 8,000% into the Dec 2017 ATH. Silly hopium?”

Chart of Bitcoin's macro price action with a fractal analysis by crypto trader and chartist "Nunya Bizniz" (@Pladizow on Twitter). Chart from TradingView.com

Not Entirely Unlikely: BTC’s Macro Chart Structure Remains Bullish

Corroborating this sentiment that BTC is on the verge of a macro upswing is other analyses of the cryptocurrency’s macro price action.

One trader recently shared this chart below. It shows that Bitcoin’s recent price action is actually a clear retest of a macro support level, not a bearish breakdown as many have noted:

“$BTC funding and premium index reached the lowest it had been since March 19th yesterday… Except this time we’re retesting a multi-year S/R level with a confirmed bullish break in MS all the way up to the monthly chart…”

bitcoin

Chart of Bitcoin's macro price action with analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Chart from TradingView.com

The fundamentals of the industry remain positive. For one, Fidelity Investments was recently revealed to have begun work on a Bitcoin fund focused on offering BTC exposure to institutional clients.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Looks Exactly Like It Did Prior to the 2016-2017 Explosion

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from The Bitcoin News – Bitcoin and Blockchain News https://thebitcoinnews.com/bitcoin-looks-almost-exactly-like-it-did-prior-to-the-2016-2017-explosion/

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