After Bitcoin (BTC) skilled a pointy correction on October 10, main cryptocurrency analyst TradingShot has famous that the sample intently echoes the worth actions seen throughout the COVID-19 crash in March 2020.
The current plunge, triggered by renewed commerce tensions and tariff threats, has drawn consideration from the buying and selling skilled, who instructed that Bitcoin’s technical setup may very well be laying the groundwork for a possible parabolic rally.
In an October 14 TradingView publish, the crypto analyst highlighted that BTC’s newest decline mirrors the 2020 crash that preceded its historic bull run.
Though the present drop is smaller, about 18% in comparison with 63% throughout the pandemic, the technical construction stays comparable.
On the each day chart, Bitcoin shaped decrease highs earlier than briefly breaking upward, then fell under its 50-day and 200-day shifting averages. This setup resembles the COVID-19 sample on the weekly chart, the place BTC additionally dipped underneath its 50-week and 200-week averages earlier than a powerful restoration.
In each instances, the Relative Energy Index (RSI) entered oversold territory, signaling vendor exhaustion and potential for reversal.
On the identical time, the 2020 crash demonstrated that sustaining candle closes above the MA200 marked a turning level for renewed bullish momentum.
Bitcoin’s key worth ranges to observe
As soon as Bitcoin reclaimed that degree, it surged from underneath $5,000 to over $60,000 inside a 12 months.
If the present market follows an identical fractal, Bitcoin’s newest flash crash may symbolize the ultimate shakeout earlier than one other main rally.
With the MA200 performing as a key help zone, analysts imagine BTC may very well be positioning for a long-term transfer towards the $150,000 area, assuming historic traits repeat.
For the reason that sharp drop that pushed Bitcoin under $110,000, the asset has struggled to maintain a powerful restoration, with $115,000 rising as a key short-term resistance degree.
Bitcoin worth evaluation
At press time, Bitcoin was buying and selling at $112,562, up 1.2% previously 24 hours however down 8% over the week. The value stays barely under the 50-day SMA of $114,665, suggesting short-term weak spot, but comfortably above the 200-day SMA of $105,528, indicating that the broader uptrend stays intact.
The 14-day RSI stands at 44.34, reflecting delicate bearish sentiment however not oversold situations. This means that whereas short-term momentum is subdued, Bitcoin retains room for a rebound if it reclaims the 50-day SMA and rebuilds its bullish momentum above key help ranges.
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