June 22, 2021

If History Rhymes, Bitcoin is Likely to Start Developing a Long-Term Bottom

2 min read
  • Bitcoin is presently going through a major correction that has caused its price to see some substantial losses throughout the previous couple of days
  • The cryptocurrency is now hovering just a hair above $30,000, with bulls struggling to support it above this level as bears take control
  • Where it patterns in the mid-term will certainly depend largely on whether $30,000 holds as support
  • Any significant break below this level could be all that it considers the crypto to see a capitulatory plunge back to its recent sub-$29,000 lows
  • One expert thinks that this type of pullback is basic in a bull market, keeping in mind that– if history rhymes– BTC could see a parabolic relocation higher following this dip

Bitcoin has actually been experiencing tremendous turbulence as of late, with bulls unable to get any major control of its price action as bears continue fading every move higher.

BTC rallied as much as highs of almost $35,000 just a couple of days ago prior to an enormous influx of selling pressure sent out the crypto reeling lower.

One trader is now indicating the rate action seen throughout previous rallies, noting that Bitcoin historically sees large pullbacks during its uptrends that generally get erased the following month.

Bitcoin Plummets as Bulls Fail to Absorb Selling Pressure

Bitcoin’s rate has felt rather heavy throughout the past few days and weeks, with all significant buying pressure being absorbed by sellers and each dip being consulted with a weak reaction.

At the time of writing, BTC is trading down 7% at its existing rate of $30,290. This marks an enormous decline from its current highs of almost $35,000 set just a couple of days back.

So long as BTC holds $30,000, it could be poised to see further upside, however the absence of a v-shaped recovery here might be a grim sign.

Expert: BTC Pullbacks are Expected, Uptrend Remains Intact

One analyst discussed in a current tweet that pullbacks like the one Bitcoin is presently seeing are anticipated and might eventually be followed by a transfer to new highs.

“We are at or around the bottom for $BTC and these past few weeks have actually been a fantastic opportunity to build up via alts. In 2017 there were 6 corrections of greater than 20-30%. This is the first of this bull run. Organizations are here and many more are coming. 60k+ soon.”

Bitcoin

 Image Courtesy of Pentoshi. Source: BTCUSD on TradingView.

Unless this pullback cuts significantly much deeper and tosses Bitcoin into a restorative phase, there’s a strong possibility that it will not last for excessive longer.

Featured image from Unsplash.
Charts from TradingView.