Bitcoin recent price movement has drawn attention from traders and analysts as it continues to follow familiar patterns in previous market cycles.
With Bitcoin’s price hovering around $106,466, many are comparing it to the market behaviors observed in 2017 and 2020. The latest technical indicators suggest that Bitcoin could experience a series of price corrections before reaching new all-time highs.
Historically, Bitcoin has shown cyclical patterns in its price behavior, particularly during the latter half of the year. In 2017 and 2020, as noted by analyst Ali, Bitcoin displayed upward movements, peaking in late December before correcting sharply. Analysts believe 2024 may follow a similar trajectory, with corrections expected after hitting key price levels.
A brief correction is anticipated as Bitcoin continues its upward climb, eying $110,000. If the cryptocurrency surpasses $125,000, a steep correction could follow, and further corrections might emerge around the $150,000 mark.
Based on previous cycles, the peak of the bull market could be around $220,000. These projections align with the cyclical behavior Bitcoin has historically demonstrated during major market rallies.
Bitcoin price discovery phase: A crucial indicator
Adding to this sentiment, another analyst, Inmortal, recently analyzed Bitcoin’s price discovery in previous cycles. According to Inmortal, Bitcoin experienced 255 days of price discovery in 2017, followed by 329 days in 2021.
So far, in 2024, Bitcoin has been in its price discovery phase for 44 days. This accelerated timeline suggests Bitcoin is entering a fresh phase of upward momentum.
Bitcoin’s price rise phase often signals the beginning of a broader market rally. As seen in previous cycles, price discovery is followed by consolidation, where Bitcoin finds new support and resistance levels.
Bitcoin’s current market movements and conditions
At the time of writing, BTC was trading at $104,697.33, showing a slight decrease of 2.30% in the last 24 hours. The market capitalization has also decreased by 2.29%, now at $2.07 trillion.
Despite this, the price trend suggests ongoing volatility, with a recent fluctuation indicating the possibility of consolidation or a slight pullback before the next move upwards.
However, the market has signs of consolidation. According to the technical indicators, the MACD and RSI indicators offer some insight into the current market sentiment. The MACD, which stands at 937.62, is above the signal line at -304.28, indicating strong bullish momentum.
The RSI, on the other hand, is currently at 65.36 and rising close to the overbought level of 70, signaling that though the market is bullish, much care needs to be taken since the asset moves near the overbought zone.
