The Bitcoin price (BTC) has been trading sideways for several weeks and now more than a month has passed since the halving. This is very reminiscent of early 2017 when Bitcoin hit $1,180 for the second time, causing a catastrophic sell-off that caused the world’s largest kryptonie to drop almost 40% in a single day.
It was all over, Bitcoin was declared dead, and what happened next was the first sign that we were in a bull market.
Zilliqa (ZIL) outperforms Bitcoin with 950% gains since March, what’s next?
After studying the charts for repetitive patterns, you can see that the pattern that developed after the 40% drop from USD 1,180 in January 2017 is almost identical to the 57% drop that occurred on March 12, also known as Black Thursday.
On both occasions, the price recovered to the levels before the fall and shortly after an M pattern, which usually indicates a double bottom.
However, what is different about the M pattern in 2017 is that the end of the M was actually the beginning of a W. Not quite a double-decker, but what came next was a 2000% increase in the Bitcoin value.
Right now in 2020, we’re seeing the same pattern. The only question is where is the W floor? Is the W floor in? Or are we expecting another small setback?
The fall in the stock market threatens the upward consolidation of Bitcoin’s price below 10,000 dollars
On June 11, there was a collapse of the upstream channel that had been forming since the Black Thursday crash. It was inevitable that there would be a setback after such a big recovery.
10 days later and we are seeing a new downward channel opening up and having the perfect Fibonacci levels aligned.
The top of the channel, which shows resistance at around USD 9,600, sits perfectly at 618, and the midpoint of the channel shows a support level at 236 fib at USD 9,168.
However, while this may not seem like a sign of a bullish Etoro market as far as the charts are concerned, what is interesting is the relevance of the 50% fibonacci at around USD 9,470, and the channel support at around USD 8,635, as these levels become prominent when looking at the heat map in the order book.