A closely watched analyst says Bitcoin (BTC) likely mirrors the market structure of 2020, which saw the crypto king rise from around $16,000 to $60,000 in a matter of months.
Pseudonymous analyst Credible Crypto tells his 345,900 X followers that BTC is likely taking a breather after rising around 100% this year.
According to the trader, Bitcoin’s price action in 2023 is reminiscent of its performance from March to August 2020, when BTC was up about 200% ahead of a month-long consolidation period.
“The current structure is identical to what we saw on BTC at $16,000-$18,000 prior to a 60-day rally to $60,000.
Fractals are not a guarantee of anything, but they often repeat when the purpose and technical context are the same.
In this case, both structures are mainly sideways, ranging structures that emerge after a clean/clear impulse (uptrend) and near vertical rally from a major low, leading me to believe the target here is re-accumulation, and thus the technical context the same.
In both cases, no significant high time frame market structure has yet been broken.
In both cases, many argue for much lower.”
Credible Crypto says Bitcoin experienced a parabolic rally in 2020 after the re-accumulation phase, which it believes will happen again for BTC this time.
“An accumulation range break last time triggered the next leg up that sent Bitcoin up 200% in two months.
A 120% rally after breaking this accumulation range is all we need to hit new all-time highs (ATH), and this time we have twice as much time (four months) to do it in 2023. I also think we can still make new ATH for Bitcoin this year? Absolute.”
The analyst says his idea will become invalid if Bitcoin drops below $24,800.
At the time of writing, Bitcoin is worth $26,084.
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Image generated: Midway through the journey