- Bitcoin’s value has been flashing some main indicators of weak spot all through the previous few days, with bears persevering with to defend towards a break above $10,500
- This weak spot could quickly be coming to a finish, nonetheless, as consumers have now shattered the promoting strain that beforehand existed at this stage
- Whereas trying in the direction of the asset’s near-term value motion, one analyst defined that he sees some placing similarities to 2016
- This comparability is bullish as a result of it means that the approaching 12 months could find yourself being extremely constructive for the benchmark cryptocurrency
It has been a turbulent previous few days, weeks, and months for Bitcoin, with the cryptocurrency trying to spark a bull development, however dealing with some critical resistance.
Presently, BTC is trying to shatter the resistance that had been suppressing its value motion all through the previous few days and weeks, with $10,500 being an important stage to look at within the near-term.
If consumers are capable of a break this stage and catalyze a powerful upwards transfer within the near-term, it might reverse the current downtrend that BTC has been caught inside.
One analyst can also be now noting that he believes there are some placing similarities between BTC’s present market construction and that seen in 2016.
This implies 2021 might find yourself being an excellent 12 months for BTC.
Bitcoin Exhibits Indicators of Power as Patrons Shatter $10,500
On the time of writing, Bitcoin is buying and selling up over 2% at its present value of $10,600. This marks a notable rise from current lows of $10,200 that had been set earlier this week.
Your complete cryptocurrency market has been flashing some indicators of weak spot all through a previous couple of weeks, with BTC ardently defending towards a break beneath $9,900 on a number of events whereas most altcoins noticed equally weak value motion.
Because the benchmark crypto reverses its current downtrend and begins pushing greater, there’s a risk that the following leg of the market-wide uptrend could quickly start.
Analyst: BTC Exhibiting Similarities to 2016 Market Construction
Whereas talking about Bitcoin’s current outlook, one analyst compared the value motion seen by BTC all through 2020 to that seen in 2016.
“In the event you’d like to match durations and market cycles, the present state of the market is corresponding to 2016. Sluggish upwards grind, with lengthy sideways consolidation durations. In 2016, a number of had been seen. In 2020, 2021, it’s seemingly we’ll see that too. Bullish,” he defined whereas pointing to the beneath chart.
Picture Courtesy of Crypto Michael. Chart by way of TradingView.
If the market can replicate the value motion seen in 2016 and 2017, there’s an opportunity that this consolidation seen as of late is just the calm earlier than the storm.