As the cryptocurrency market approaches the holiday season, analysts say including Crypto Jebb, draw parallels between current Bitcoin trends and historical patterns observed in 2017 and 2020. At this time of year, Bitcoin previously hovered just below its all-time high of $20,000.
Bitcoin has regularly breached resistance levels over the past seven years, but the current situation only resembles one previous instance – in late 2020 – when the cryptocurrency soared following the outbreak of the COVID-19 pandemic and substantial monetary stimulus from the Federal Reserve.
During that period, Bitcoin experienced a breakout, reaching $65,000 within six months after initially struggling around $20,000. Although Bitcoin recently reached a price of $73,700, inflation has affected comparisons with previous highs, prompting analysts to suggest that recent price movements should be viewed in the context of currency devaluation.
Currently, expectations are high that Bitcoin will find support around $70,000. Analysts expect a pattern similar to 2020, where there could be a small correction followed by a bigger pullback. If historical trends hold, this could lead to another test of all-time highs in the near future.
New highlights or sideways action?
Jebb described the current market dynamics as a “change in character”, a term from Lux Algo terminology, meaning a transition in market behavior. He explained that Bitcoin has gone through two major phases over the past six months: a corrective phase followed by a bullish breakout from a falling wedge pattern.
While the market is moving quickly, Jebb warned that Bitcoin cannot maintain its parabolic uptrend indefinitely. A sideways trading period is likely, during which Bitcoin could consolidate or experience a sharp rise to new highs, potentially reaching $80,000 to $90,000.
