A closely followed analyst says Bitcoin (BTC) is likely mirroring its 2020 market structure that saw the crypto king rally from about $16,000 to $60,000 in a few months.
Pseudonymous analyst Credible Crypto tells his 345,900 X followers that BTC is likely taking a breather after surging by about 100% this year.
According to the trader, Bitcoin’s 2023 price action is reminiscent of its March to August 2020 performance when BTC surged by about 200% prior to a one-month consolidation period.
“The current structure is identical to the one we saw on BTC at $16,000-$18,000 prior to a 60-day rally to $60,000.
Fractals aren’t guarantees of anything, but they often repeat when the goal and technical context are the same.
In this case, both of these structures are primarily sideways, ranging structures occurring after a clean/clear impulse (uptrend) and near vertical rally off a major low, which makes me believe that the goal here is re-accumulation, and so the technical context is the same.
In both cases, no significant high timeframe market structure has yet been broken.
In both cases, many are calling for much lower.”
Credible Crypto says that Bitcoin went on a parabolic rally in 2020 after the reaccumulation phase, which he thinks will happen again for BTC this time around.
“A breakout from the accumulation range last time ignited the next leg up which sent Bitcoin up 200% in two months.
A 120% rally after a breakout of this accumulation range is all we need to hit new all-time highs (ATH), and this time, we have twice as much time (four months) to do it in 2023. So do I think we can still make new ATH this year for Bitcoin? Absolutely.”
The analyst says that his idea will be invalidated if Bitcoin goes below $24,800.