Bitcoin’s price action looks dangerously similar to the pattern that sent it crashing to $60000

Bitcoin’s BTC$70,483.40 price action is giving us a sense of déjà vu, and it’s not the good kind.

But if you look at the price swings since early February, there is an extremely specific, very prominent pattern that looks like what we saw from November through January. That set-up eventually led to a crushing sell-off, which saw the end of that line up for nearly $60,000 — almost all sold out.

We are looking at what technical analysts often call a counter-trend recovery – a modest bounce within a downtrend.

Here is the chart. Check out the two yellow channels.

Bitcoin’s daily chart. (TradingView)

First yellow channel The left, with price action from Nov. Jan – 20 20 and. Afterward, bitcoin was trading in a narrow range backwards with varying upward tilt after falling from $100,000 to slightly higher. In a larger downtrend, it looked like the price was paying back but in reality it was just an interruption (or little bounce) of something.

It was a result of which the price eventually fell below the bottom of that trading range. For the most part, level traders had been treating themselves as a “floor”, or support, gave way, and bitcoin plunged in ‘right line from about $90,000 down to nearly $60,000 by Feb. 6 s.

Now look at the second channel on the right.

Having hit those lows in early February, bitcoin has again traded in a narrow range with an upward tilt (perfectly placed between those two trendlines) since it reached that low-levels.

But the similarity with the previous pattern is undoubtedly ascribed to this type of . Like November-January pattern, the current relief rally does not have explosive momentum like that of a present relief rallier. It’s a slow, choppy grind up it is. In technical analysis theory, this means bullish exhaustion; the market just pauses for breath before the bears recharge their engines.

What next?

It’s not a holy grail for charts to be charted, and past performance doesn’t guarantee future results. Still, traders read market psychology with them and right now they’re a story of showcasing he has stumbled across – “buy the dip” crowd that is weak and indefensible.

It could signal a return of bearish control when bitcoin falls below the lower trendline of its current channel, about $65,800.

Takeaway Bitcoin’s a big decision point is bitcoin, the takeaway. The bear market, some predict, could expand if prices fall below the formation of channels and may be deepened in the long run-up to this point whereby it is expected that price will drop below channel formation. A break out above the channel would mean that the downtrend could be dwindling, and bulls might then make a strong comeback.

Thanks for reading Bitcoin’s price action looks dangerously similar to the pattern that sent it crashing to $60000