According to one widely followed crypto analyst, Bitcoin (BTC) may be on its way to some explosive moves to the upside if the current setup is anything like the November 2020 market structure.
Pseudonymous analyst TechDev tells his 413,000 Twitter followers that BTC appears to be mirroring the November 2020 price action, though it remains to be seen if the same pattern plays out again.
TechDev’s chart suggests that BTC is currently sending three technical signals reminiscent of the November 2020 market structure.
According to the chart, BTC has confirmed a breakout of diagonal resistance after breaking above it in January and retesting it in March. It also shows that Bitcoin is currently respecting a horizontal support after the crypto king bounced off it late last month.
Looking at the Relative Strength Index (RSI), the chart indicates that the momentum indicator broke above its 14-month simple moving average (SMA), retested support and moved back up.
The three signals also appeared in November 2020 before Bitcoin surged from above $10,000 to $60,000 in a matter of months.
“Next we will find out if July 2023 = Nov 2020. Bitcoin.”
The closely followed analyst says that while many market participants make predictions based on the traditional four-year cycle theory, he says something more complex is emerging instead.
“I remember my belief in a predictable four-year heartbeat of blow-off tops that would make everyone rich made me allergic to other interpretations.
Perhaps we are in the same macro impulse wave that started in 2019, seeing a similar early structure to the current sub impulse as with the last one (late 2020).
Or maybe the four-year cycle (closer to 3.5 years) if there is one is driven by liquidity, not halving. We may be in the early stages of a parabolic leg, similar to late 2015/2016, and those who can’t see before 2019 won’t get “another big dip.”
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