Bitcoins Latest Sell-Off Is Reminiscent Of The Start Of The 2016 Bull Rally, Says Veteran Trader Peter Brandt
Bitcoin (BTC) could be in position for a big move higher if history is any guide, with the recent correction since the April mining reward halving event echoing the benchmark cryptos price action that preceded BTCs bull revival in 2016. This is the observation made by chart expert Peter Brandt.
Bitcoin Price Action Resembles The 2016 Market
Bitcoin on Monday succumbed to a massive wave of selling, with BTCs price falling below the $50,000 price tag as crypto and global stock markets experienced one of their steepest losses in recent years.
But popular trader Peter Brandt said in a Monday X post that the current market structure is eerily similar to moves witnessed before the bull market of 2016 hinting at a possible breakout approaching for Bitcoin in the near future.
Brandt opined:
Please note that $BTC decline since halving is now similar to that of the 2015-2017 Halving Bull market cycle.
The Bitcoin halving in 2016 took place on July 9, with BTC valued at $650 on that day. During that cycle, the crypto market sunk to a low of $470 in a 27% post-halving retracement in the course of a month before soaring to a cycle peak of $20,000 in December 2017.
Bitcoins fourth reward halving, a programmed code reducing the pace of supply expansion by 50% every four years, occurred on April 20th. The latest Bitcoin meltdown below $50K now marks a 26% slide from the post-halving price of around $64,900.
The worlds largest cryptocurrency by market cap has shed 25.1% of its value since hitting $70K in July but is showing signs of making a stunning comeback, surging above the $56K mark earlier today.
All things considered, BTCs path of least resistance appears to be on the higher side. If it successfully reaches the $56,000 hurdle, BTC has the potential to skyrocket.
Traders will be closely watching the dynamics of the crypto market, particularly the action around the $56K mark. More broadly, several factors such as macroeconomic conditions, institutional trends, U.S. politics, and investor sentiment could impact the price of Bitcoin.
The overall cryptocurrency market cap now stands at $1.94 trillion, and Bitcoins dominance rate is 55.8%.
Text source: ZyCrypto
