Bitcoin’s 32% drop from its peak fits past patterns, suggesting a potential upcoming surge in line with historical trends.
The “Cup and Handle” pattern indicates a breakout above $70,000 could push Bitcoin toward $100,000.
Bitcoin’s critical support at $58,000 needs to hold whereby a drop below may test $52,000, while resistance at $72,000 is key.
Bitcoin has faced notable volatility, with its price dipping 32% from its all-time high as highlighted by analyst CryptoJelle. This pattern, reminiscent of past bull markets, suggests that Bitcoin might be primed for another surge. Historically, similar pullbacks have often signaled the beginning of significant upward movements.
At its lowest point last week, #Bitcoin was down 32% from its all-time high.
This happened in once in 2020, and many times in 2016 and 2017 – before price pushed on to new highs.
I don't think this time is different. pic.twitter.com/tzswxTSkiL
— Jelle (@CryptoJelleNL) August 16, 2024
Examining Bitcoin’s price action over various bull markets reveals intriguing patterns. During the 2016-2017 bull market, Bitcoin experienced average pullbacks of 32%. These included notable corrections of 43%, 40%, 34%, and 31%. Despite these fluctuations, the overall trend remained bullish, eventually pushing Bitcoin to new highs.
In the 2020-2021 bull market, the average pullback was slightly lower at 24%. Corrections during this period were less severe, with declines of 23%, 15%, 32%, and 26%. This period was characterized by a strong uptrend, with corrections being relatively mild compared to earlier cycles. The resilience of Bitcoin’s price during this time underscores its potential for recovery and growth.
Will Bitcoin Dip To $40,000 Before Hitting $100K? Insights
In the 2023-2024 bull market, Bitcoin has seen an average pullback of 23%. Significant corrections have included declines of 22%, 20%, and 32%. Despite these setbacks, Bitcoin has shown strong upward momentum. However, recent pullbacks suggest potential consolidation or a testing of key support levels.
Key support and resistance levels are crucial for understanding Bitcoin’s current price action. Presently, Bitcoin trades around $58,230, which serves as a critical support level. Other notable support zones include $32,000 to $34,000 and $19,000 to $20,000, which have previously provided price stability.
Source: X
The $72,000 mark represents a significant barrier, reflecting previous all-time highs and potential reversal points. Beyond this, $140,000 stands as a major resistance target, suggesting a key milestone if Bitcoin continues its uptrend.
#Bitcoin still trades inside of this major cup & handle pattern
Break above $70,000 – and we're looking at a 6-figure target. pic.twitter.com/s6yLoVbLzK
— Jelle (@CryptoJelleNL) August 16, 2024
In CryptoJelle’s analysis, Bitcoin is forming a classic “Cup and Handle” pattern, a bullish continuation signal. The “Cup” formed between 2021 and 2023, characterized by a rounded bottom, while the “Handle” is the consolidation phase following the cup. This pattern suggests a potential breakout if Bitcoin surpasses the $70,000 resistance zone. Such a breakout could drive the price towards $100,000, aligning with the pattern’s projected target.
Source: X
However, should Bitcoin fail to breach the resistance and drop below the $58,000 support level, further downside risks could emerge. Potentially, Bitcoin might test the $52,000 support or lower levels. As at press time, Bitcoin is priced at $58,425.15 with a 24-hour trading volume of $34,948,450,275, reflecting a modest increase of 0.43%.
The post Bitcoin Repeats Historical Corrections: Will BTC Hit $100K? appeared first on CryptoTale.
