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

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  • Bitcoin is currently undergoing a serious correction that has caused its price to see some significant losses throughout the past few 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 trends in the mid-term will undoubtedly depend largely on whether or not $30,000 holds as support
  • Any major break below this level could be all that it takes for the crypto to see a capitulatory plunge back to its recent sub-$29,000 lows
  • One analyst believes that this type of pullback is standard in a bull market, noting that – if history rhymes – BTC could see a parabolic move higher following this dip

Bitcoin has been experiencing immense turbulence as of late, with bulls unable to gain any serious control of its price action as bears continue fading every move higher.

BTC rallied up to highs of nearly $35,000 just a couple of days ago before a massive influx of selling pressure sent the crypto reeling lower.

One trader is now pointing to the price action seen during previous rallies, noting that Bitcoin historically sees large pullbacks during its uptrends that typically get erased the following month.

Bitcoin Plummets as Bulls Fail to Absorb Selling Pressure

Bitcoin’s price has felt quite heavy throughout the past few days and weeks, with all major buying pressure being absorbed by sellers and each dip being met with a weak response.

At the time of writing, BTC is trading down 7% at its current price of $30,290. This marks a massive decline from its recent highs of nearly $35,000 set just a few days back.

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

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Analyst: BTC Pullbacks are Expected, Uptrend Remains Intact

One analyst explained in a recent tweet that pullbacks like the one Bitcoin is currently seeing are expected and may ultimately be followed by a move to new highs.

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

Bitcoin

Image Courtesy of Pentoshi. Source: BTCUSD on TradingView.

Unless this pullback cuts significantly deeper and throws Bitcoin into a corrective phase, there’s a strong possibility that it won’t last for too much longer.

Featured image from Unsplash.
Charts from TradingView.

Source: https://bitcoinist.com/if-history-rhymes-bitcoin-is-likely-to-start-developing-a-long-term-bottom/?utm_source=rss&utm_medium=rss&utm_campaign=if-history-rhymes-bitcoin-is-likely-to-start-developing-a-long-term-bottom


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