Bitcoin’s price fell to $36,715 as US stock markets opened. Sellers were strong over the weekend. After surpassing $38,400, the price faced selling pressure and lost the main resistance area. Is the resemblance to 2020 concerning?
Since the beginning of October, Bitcoin has been on a consistent upward trend. The price broke through the 530-day trend line, pushing yearly peaks to higher levels. On November 24th, Bitcoin reached $38,437, marking its most recent peak for 2023, but remained above $36,500 after some profit-taking.
The green close of the sixth week’s candle further encouraged the continuation of the upward movement. This was last observed in October 2020, at the start of the previous bull cycle. Similarly, the price did not immediately reach record levels after the PayPal announcement, but it underwent a similar process to what we are witnessing today.
Potential ETF approvals, the end of concerns regarding the Binance case, and many significant developments point to the possibility of 2020 repeating itself. Bitcoin’s price increase could also create new peaks for altcoins. Crypto commentators JJCycles and Bob Loukas pointed to the increase in the size of CME open positions, claiming that the BTC price recovery will continue. On the other hand, CredibleCrypto expects a drop before BTC continues its rise.
The Elliot wave chart can be useful for interpreting long-term price movements. According to the most likely count, BTC is in the third wave of a five-wave movement that began in September. If this count is correct, the price should reach new and strong peaks during this movement. Subwave counts suggest that after the last correction, the price could rise to $41,000. However, a break below the triangle could lead to a sell-off towards $35,000. Still, the latest CoinShares report indicates that institutions are entering the market at record levels.
As this article was prepared, Bitcoin’s price is finding buyers at $36,890, and the total volume of cryptocurrencies is hovering around $50 billion.