Is the Bitcoin Price Mirroring the 2013-2017 Bullish Cycle?
Prominent trader and analyst, who goes by the Twitter monicker Ali_Charts, recently tweeted a prediction suggesting Bitcoin’s (BTC) current price trajectory resembles the 2013-2017 bullish cycle. According to this analysis, if history repeats itself, the Bitcoin (BTC) may see a significant price pump towards the end of 2023.
BTC Performance: Current State of Play
As of today’s price, August 4th, sees Bitcoin trading at $29,030.40. Over the last 24 hours, Bitcoin’s price saw a 0.58% drop, pushing the weekly performance further into the red with a total weekly loss of -1.12%.
Despite the lackluster daily performance, Bitcoin managed to outshine the rest of the market during the past day of trading. Bitcoin’s market dominance increased by 0.02% in the last 24 hours, bringing its total market share to 48.73% at press time.
Technical Analysis: Potential Downside Breakout Looms
On the technical front, Bitcoin’s daily chart indicates the formation of a bearish rising wedge pattern, hinting at an imminent breakout towards the downside in the upcoming week. If this pattern proves accurate, Bitcoin’s price could fall to around $26,915 within the next few days.
Despite this bearish pattern, Bitcoin’s price may attempt to break above the significant $30K mark within the next 24-48 hours. Continued buying support could potentially drive Bitcoin’s price up to the next major resistance level at $32K.
Short-Term Bearish Trend: The EMA Lines Signal
An important point to note is the crossing of the 9-day Exponential Moving Average (EMA) line below the 20-day EMA line in the last week, signalling the onset of a short-term bearish trend. This indicator suggests that Bitcoin’s price may continue to fall in the upcoming days. Further to this, the 9-day EMA line has broken below the 50-day EMA line over the past 48 hours.
If the 20-day EMA line falls below the 50-day EMA line on Bitcoin’s chart, it may validate the bearish outlook and the chart pattern. In this scenario, it’s probable that Bitcoin’s price will retest the critical $26,915 support level.
Despite the negative daily performance, the ongoing bullish sentiment, evidenced by Ali’s prediction and Bitcoin’s market dominance, leaves some room for optimism. However, traders should stay alert to the impending bearish signals from the EMA lines and the rising wedge pattern on Bitcoin’s chart.