Bitcoin Price Following 2016 Bull Market Reaccumulation Pattern

Tony "The Bull" Severino

5 years ago

3 mins read

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Crypto investors, traders, and analysts alike are mostly in agreement that Bitcoin price has switched to bull market mode ever since the crypto asset left its bear market bottom behind. But now that Bitcoin price has been correcting in recent weeks, the market has become bearish and fearful that a deeper correction will soon be in play.

However, bulls may have little to fear, and this current correction could be nothing more than a reaccumulation phase in the midst of a bull market. The current price action also very closely mimics that of Bitcoin in 2016, just before the crypto asset skyrocketed into the public eye and reached its all-time high of $20,000, taking the world by storm.

Bitcoin Price Bull Market Reaccumulatoin Phase Deja Vu From 2016

According to Wyckoff theory, assets go through what’s called an accumulation phase, before the price of the asset is marked up and later distributed at a higher price. Most crypto investors or traders have likely heard this term used throughout the Bitcoin bear market, as a reason to keep hope while the asset fell to lower and lower prices.

After Bitcoin bottomed, all the BTC that was accumulated at those low prices was quickly marked up, causing a parabolic run. That rally has since stalled and is in the midst of a multi-month correction that very well could be a reaccumulation phase according to Wyckoff theory.

In assets with strong upside potential, after distribution has been satisfied at higher prices, the asset’s price often falls back to important support levels where those late to buy up the asset at the previous bottom are now eager to buy up what they perceive to be another shot at buying the dip.

This sort of behavior is playing out in Bitcoin price charts currently, and it bears a striking similarity to the same sort of behavior Bitcoin price was exhibiting in 2016, just at the biggest crypto bull run ever had just begun to take footing. Once again, most believe that Bitcoin is building the foundation of its next bull run, and if this is indeed the case, the asset showing a nearly exact replication of the previous bull pattern is worth paying attention to.

$BTC still following 2016 pic.twitter.com/v9jg1bMOZo

— RJ (@RJ_Killmex) August 31, 2019

In a new chart shared by a prominent crypto analyst, Bitcoin price not only retested the 21 EMA in 2016 much like it is now, a dip in the Relative Strength Index indicator also caused a reset in overbought conditions so Bitcoin could get right back to its moon mission with very little pause.

Following the successful retest, Bitcoin price went on to break its former all-time high at $1,200. After that, the rest was history, and Bitcoin set a new high at $20,000 that if this current retest holds, may soon be a broken record.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.