Bitcoin looks much like it did near 2015’s bottom, What’s Happening?

By Tsunami On May 16, 2020

Bitcoin saw a sharp decline today that led it down to lows of $9,200 before it rebounded back into the mid-$9,000 region. This price action made the cryptocurrency vulnerable to seeing further downside in the days and hours ahead.

It is important to note that buyer aggressively confronted this dip with buying pressure, confirming that it does have some significant support within the lower-$9,000 region.

Analysts are noting that the crypto could see some significant downside in the days and weeks ahead if it fails to garner any further upwards momentum. One analyst is even noting that it could decline to as low as $7,600 in the near-term.

Data regarding investor sentiment suggests that the crypto’s inability to break above $10,000 is causing some investors to anticipate further weakness.

Bitcoin Declines to Lower-$9,000 Region as Resistance Mounts

One popular pseudonymous crypto trader mused this possibility in a recent tweet, explaining that he is anticipating a drawback that potentially leads Bitcoin to lows in the $7,000 region.

“BTC – failure to break down then I would setup short again from 96s – 97s. Taken 50% off initial short,” he explained while pointing to the chart seen below.

Bitcoin looks much like it did near 2015’s bottom

An analysis by a popular trader, however, indicates that the ongoing Bitcoin price action is looking much like it did prior to BTC rallying from $500 to $20,000 over the span of a year and a half.

According to Polar Hunt (@Polar_Hunt on Twitter), his fractal analysis algorithm indicates that Bitcoin’s price action from November until now is currently 76% similar to the price action seen near the 2015 macro bottom around $200.

While not a perfect fractal, the chart indicates that should BTC follow the fractal in full, the cryptocurrency will soon experience another full-blown bull run marked by exponential gains.

Corroborating this, on-chain analyst Philip Swift noted that Bitcoin recently printed the exact same on-chain signal that was seen when the cryptocurrency bottomed around $200 in 2015 and $3,150 in 2018:

“Drop in miner revenue sent Puell Multiple back into the green zone today. This zone represents a great time to buy BTC on L/T (18months+) horizons,” Swift wrote in reference to the chart above.

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