The same exact pattern for #Bitcoin has played itself out in every cycle with the 20 Week EMA.

Recently, during the pullback to $38,500, price narrowly missed a retest of the moving average as support, a false retest.

But a closer look at the cycles shows that every single one has experienced this, in an even larger 6-step pattern:

1. Price breaks above the moving average and goes on its first run of the cycle

2. Price breaks below the moving average after the completion of the first run

3. Price breaks above again, marking the first true rally

4. Price creates a false retest of support where it narrowly misses the moving average

5. A second run takes place (We are here)

6. Bitcoin finally makes a true retest of the Moving average as support

According to this measure, maybe the full correction does not need to be as deep while the moving average sits at just $40,000.

Sideways price action is typical after the true retest.