Bitcoin Price Action Mirrors Q1 2021, Volatility Ahead?
The rise of the largest cryptocurrency in the market, Bitcoin (BTC), has caught the attention of investors and analysts, with many drawing parallels to BTC’s performance in Q1 2021. While the similarities are striking, some experts caution against assuming that history may repeat itself themselves. itself.
According to market watcher Maartunn, Bitcoin’s current price action shows similarities to its performance in Q1 2021.
Maartunn suggests that while that doesn’t necessarily mean it will repeat itself, it’s important not to ignore the similarities between the current market conditions and those in Q1 2021, which could lead to increased volatility.
Bitcoin’s Bull Run Will Be Delayed?
According to what market watcher Martunn has spotted in Q1 2021 and 2023 in response to another analyst, CryptoCon, a small, short-term correction in the Bitcoin price may be needed to fuel the current bull run.
This is common in Bitcoin’s cycles and usually happens after the price breaks above the 50 exponential moving average (EMA). After this pause, Bitcoin typically experiences one retest during the entire bull run.
Retests of key support levels, such as those seen in Q1 2021 and potentially in 2023, are seen as a healthy and necessary correction that could support years of gains for Bitcoin. CryptoCon believes that a correction in Bitcoin’s price could benefit the cryptocurrency’s long-term growth and the similarities between these periods.
By establishing a more sustainable path, a correction can help foster a more stable and sustainable market for BTC.
Key supports for BTC in case of pullback
In the event of a decline in Bitcoin’s price, it will be crucial for bulls to defend the $24,000 and $25,000 levels to prevent further decline. This range has been a key accumulation zone for buying more Bitcoin in the current uptrend, which could help extend the rally and enable the cryptocurrency to break through the $30,000 level with strength.
However, in the event of a sell-off in Bitcoin’s price, where the cryptocurrency continues to fall below the $24,000 mark, it will be important for bulls to hold the lower levels of $21,000 and $19,000.
These levels are considered crucial support floors that can prevent a further decline in Bitcoin’s price in the worst case scenario.
At the time of writing, Bitcoin’s price has remained relatively stable recently, trading at around $27,900. Despite this, Bitcoin is still hovering near a key resistance level at the $28,600 mark, which is seen as a major hurdle to clear before the cryptocurrency can breach the $30,000 level.
Overall, a short-term correction in Bitcoin’s price action should not be cause for alarm, but rather viewed as a normal and necessary part of cryptocurrency market cycles.
Chart from Tradingview.
