Bitcoin indicators point to an imminent rally that mirrors the 2020 price action
After hitting the $17,000 level, and pushing up most of the cryptocurrency market with it, a pattern has emerged with Bitcoin (BTC) moving in a similar fashion to over two years ago, eventually leading to a bullish rally for BTC.
In particular, Bitcoin has mimicked indicators from 2020, including a descending neckline, bearish price action, relative strength index (RSI) uptrend, and RSI moving average (MA) uptrend, which observed by prominent crypto trading analyst Trader Tardigrade on 30 November.
As the analyst noted, this price action in early 2020 resulted in a breakout for the flagship decentralized finance (DeFi) token, which peaked around $10,500, meaning a similar result can be expected in December 2022, potentially ending the year in the range to about $19,700.
Meanwhile, Trader Targidrades analysis was confirmed by another cryptanalyst known as Magswhich posted another side-by-side chart on December 1 to illustrate the similarities between Bitcoin’s price activities in 2020 and 2022.
More indicators of upcoming rally
At the same time, crypto trading expert Michaël van de Poppe highlighted that “as long as Bitcoin remains above $16.6-16.8K, the thesis still stands that long,” he posted in his analysis of Bitcoin price action on December 1st.
Furthermore, pseudonym cryptanalyst Mustache revealed that “every time BTC has fallen over the past 8 months, there has always been a relief rally back to the 0.5 FIB line,” and set the 0.5 Fib target at around $18,500.
On top of that, Trader Tardigrade have also published an analysis of historical ‘Bitcoin halving rallies’ that typically started “14-18 months before the halving month”, the next of which is estimated to be March 2024.
Bitcoin price analysis
At press time, Bitcoin has fallen below the previously reached $17,000 line, changing hands at $16,987, recording a modest gain of 0.90% on the day and 2.70% over the past seven days, still trying to recover after the loss of 16.88% on its monthly chart.
As it stands, Bitcoin’s market capitalization currently stands at $326.21 billion, maintaining its position as the largest cryptocurrency by this indicator, according to CoinMarketCap data obtained by Finbold on 1 December.
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