An analyst suggests Bitcoin’s current price pattern mirrors a late 2022 setup, suggesting a potential significant rally could follow if a key support level holds. However, the market currently faces a downturn, with another prominent analyst expecting further lows despite recent price gains.
Analyst Merlijn The Trader indicated that Bitcoin’s current market behavior resembles its position in late 2022, a period preceding a major rally. He stated that maintaining the key $65,000 level would complete a market base, while losing it would continue a phase of liquidity sweep.
His analysis noted that Bitcoin had already run this playbook over three years ago, which is evident from the descending compression and sweep buy liquidity. He believes this setup will trap late sellers and BTC’s price will eventually reverse upon its conclusion.
Merlijn explained that the last time this happened, BTC’s price skyrocketed from $15,000 to $73,000. A similar price surge of 385% would send the cryptocurrency flying to well over $300,000.
In a subsequent post, he doubled down that every major BTC cycle had started with a bear trap. In previous examples, such as the massive runs in 2013, 2016, and 2020, the price gains were quite spectacular – 24,000%, 6,300%, and 842%, respectively.
The analyst noted that the pattern doesn’t change as fear is always the first phase of the rally. Meanwhile, analyst Doctor Profit acknowledged BTC’s recent pump to $74,000. However, he argued that this is likely to be a short-term upside move, before “we see another downturn” to new lows.
The cryptocurrency was indeed rejected at $74,000 for the second time in the past 10 days or so, and now struggles to remain above $70,000. Doctor Profit commented, “Expect more upside move before we see another downturn move to new lows.”
