A widely followed analyst is warning that Bitcoin (BTC) may be mirroring a 2014 bear market pattern with its latest rally.
The analyst pseudonymously known as Rekt Capital tells his 560,700 followers on X that Bitcoin could rally 10% from its current value before collapsing based on historical precedence.
“What we are seeing now is more akin to the 2014 macro [descending] triangle, where price is consolidating beneath the triangle base (orange). If Bitcoin continues to mirror 2014 then price could still continue to consolidate a bit more, but the base of its current triangle (~$82,500) would be the ceiling for Bitcoin.”
The analyst also says that if Bitcoin forms a new consolidation phase after correcting it would indicate a bear market bottom is forming based on the 2014 pattern.
“Bitcoin tends to build major consolidation periods on breakdowns from macro triangles (orange boxes). In 2018 and 2022, these major consolidation periods developed at bear market bottoms. Whereas in 2014, Bitcoin built two such periods: just beneath the macro triangle it broke down from and then later at its respective bear market bottom.
If history repeats, this current consolidation period could precede additional macro downside over time and the next major consolidation period would develop around the bear market bottom.”
Bitcoin is trading for $74,733 at time of writing, flat on the day.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Generated Image: Midjourney