Bitcoin Price Shows ‘Uncanny Resemblance’ to 2018 Breakout Pattern
BTC has hovered between bullish and bearish attitudes. But one chart analyst sees a possible scenario, as the bitcoin price action in the past months recalls the rapid spike of BTC prices at the end of 2018.
Bitcoin Price Resembles Last Stretch of 2018
BTC went through its biggest bear market in history in 2018, losing over 84% in value between December 16, 2017, to December 15, 2018. However, after finding the bottom at around $3,120, the price began to recover and eventually returned bullish towards Q2 of 2019. The unique path that Bitcoin followed during that key time period appears to be happening again, according to two veteran traders – Josh Rager and Cantering Clark.
Granted, the chart comparison is largely speculative and points to only one of the many possible scenarios, but the correlation is nevertheless striking.
There is an uncanny resemblance between these two charts.
It would make sense that after the first major move up, that the first major correction and following accumulation period would have a fractal resemblance to the larger original.
— Cantering Clark (@CanteringClark) December 9, 2019
The Bitcoin chart analysis sometimes works as a self-fulfilling prophecy, and the leading coin has shown it is still capable of large-scale daily rallies given the right news. But this time, the prediction once again clashed with extremely bearish views, seeing BTC slide to a much lower tier.
BTC Still Awaits Big Move in Either Direction
The Bitcoin fear and greed index has returned to 32 points, moving out of the “extreme fear” territory. However, the sentiment remains cautious. A big spike in prices could come from “whale” action, or from increased futures activity.
Bitcoin price is still suggesting its price may conform to various models of appreciation, potentially rising to as high as $100,000 or above. However, there is always skepticism, as BTC is regularly viewed as a highly risky and speculative asset.
But before a breakout, bitcoin price will also have to repair its falling volumes and low Tether (USDT) activity. As December progresses, activity is winding down ahead of the holidays. BTC volumes slid from their usual levels around $19 billion in 24 hours, to around $15 billion in a downward trend in the past few days. A recent tranche of USDT issued may start to turn the trend:
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 200,000,000 #USDT (200,836,214 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) December 9, 2019
Chart analysis is also not one-sided, and the current bitcoin price level also sees predictions of a sharp downturn. However, the launch of futures markets, as well as options on futures, may smooth out the price swings.
The past days have seen significant “whale” sightings, suggesting BTC holders remain interested in the coin’s future. Further accumulation in mid-sized wallets also continues, highlighting that the long-term bullish case for bitcoin is still alive.
What do you think about the BTC price potential at the end of 2019? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @Canteringclark @Whale_alert