Analysts are highlighting a potential technical parallel between Bitcoin’s current market structure and its 2017-2018 bear cycle. Following its 2017 peak, BTC fell approximately 67% before a “death cross” on its 3-day chart preceded another 50% drop. The current chart formation is being compared to that period, suggesting a similar technical setup could indicate further downside risk if confirmed.
Analysts are comparing Bitcoin’s present 3-day chart structure to its 2017-2018 bear market cycle. After its December 2017 peak near $20,000, BTC fell about 67% over the following months. An extended downtrend led to a 3-day “death cross” in November 2018, where the 50-period SMA crossed below the 200-period SMA.
Following that death cross, the price underwent a further sharp reduction of roughly 50%. “Analysts are comparing the current 3-day chart structure to that prior cycle,” according to recent market commentary. This final capitulation phase saw price dip from around $6,000 to near $3,000 before a long-term bottom formed.
At the time of writing, Bitcoin is trading at $67,332.99 with a 0.88% decrease, according to CoinMarketCap. The coin’s daily trading volume is around $52.38 billion, and its market cap has exceeded $52.1 billion. The 3-day timeframe is considered significant as it filters short-term volatility to highlight structural trend shifts.
Moving average crossovers are lagging indicators that confirm trend shifts after significant price action has already occurred. In the 2018 case, the death cross emerged after BTC had already decreased considerably from its all-time high. Traders tracking these signals are also assessing support zones, trading volume, and larger macroeconomic developments.
