Wow, the price pattern of bitcoin $BTC$66,077.68 that announced the final and deepest phases of previous bear markets has appeared again.
In mid-November 2018, CoinDesk discussed a bearish shift in long-term averages in a chart that groups three days of price action in each candle. It warned that a similar occurrence in 2014 deepened the bear market and, over the course of a week, bitcoin plummeted to less than $4,500 from $6,000, extending the fall from the peak of approximately $20,000.
Cut to April 2022. The same pattern occurred, with the same result. The $BTC bear market deepened and prices plummeted to $17,500 from $32,000, having already fallen from the late 2021 record of nearly $70,000.
Now, the pattern has returned. Although past performance does not guarantee future results, history invites caution. Some experienced traders are preparing for a deeper fall below $60,000.
Bitcoin recently traded near $66,100, with a 3% drop in 24 hours. Other major tokens and the CoinDesk 20 index lost even more. However, spot bitcoin ETFs listed in the U.S. have attracted over $1 billion in three days.
"That breadth of demand indicates absorption rather than speculation," said Iliya Kalchev, analyst at Nexo Dispatch, in an email. "On-chain data reinforces the shift: wallets holding more than 10,000 Bitcoin have accumulated during the recent correction from the $70,000 region, suggesting that long-term holders are stepping in as supply decreases."
However, flows into ETFs must persist to sustainably drive $BTC higher, Kalchev stated.
In traditional markets, oil prices remain supported by uncertainty between the U.S. and Iran and the potential for escalation over the weekend. Stay alert!
-Dan Pentagram
#MarketRebound #BitcoinGoogleSearchesSurge #BTC #bitcoin #Binance