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Bitcoin’s recent bout of intense selling pressure has slowed as the crypto finds some support within the lower-$8,000 region, which appears to be holding strong as its price has been able to slowly inch higher in the time since BTC touched its near-term support level.
Analysts are now noting that Bitcoin may currently be expressing a similar pattern to that seen in 2017, which could mean that it is exiting its corrective period and entering another fresh uptrend, assuming that history rhymes.
Bitcoin Holds Steady Above Near-Term Support as Next Consolidation Phase Begins
At the time of writing, Bitcoin is trading up under 1% at its current price of $8,562, which marks a slight climb from its recent lows of under $8,400 that were briefly set during its recent drop, at which point it incurred a slight influx of buying pressure that helped slow its decline.
It does appear that Bitcoin is once again entering a fresh consolidation period, which may mean that it will trade sideways around its near-term support level before it incurs another swift movement.
This notion is supported by the fact that BTC’s Bollinger Bands have been tightening up in the time following its recent drop to its current levels, which typically signals that a big movement is imminent.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet while pointing to BTC’s one-hour candle chart.
“$BTC #Bitcoin – Bands are tight on the 1 hour,” he explained while referencing the below chart.
$BTC #Bitcoin – Bands are tight on the 1 hour pic.twitter.com/lWCWbbiXRi
— Cheds Trading (@BigCheds) November 16, 2019
Will BTC Soon See Similar Price Action to that Seen in 2017?
Bitcoin’s recent price action may be similar to that seen in 2017, according to one analyst, who notes that the recent series of downwards movements could simply mark stop runs that will ultimately be proceeded by another major upwards movement.
HornHairs, a popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, noting that Bitcoin may soon leave its current corrective period.
“I still remember the exact moments of each of these stop runs on $BTC during 2017. Each turned out to be a turning point and end of a corrective period in the larger bull run. I can’t help but think we saw the exact same thing happen recently, just on the weekly chart,” he explained while offering a side-by-side comparison of the charts seen below.
I still remember the exact moments of each of these stop runs on $BTC during 2017. Each turned out to be a turning point and end of a corrective period in the larger bull run.
I can't help but think we saw the exact same thing happen recently, just on the weekly chart. pic.twitter.com/0CVsr2C1mu
— HornHairs 🌊 (@CryptoHornHairs) November 16, 2019
The coming weeks will likely offer insight into the validity of this possibility, as any surge from BTC’s current levels could confirm that this corrective period is truly over and that further gains are imminent.
Featured image from Shutterstock.
