Bitcoin has been caught in the throes of tremendous volatility over the past several days and weeks, which was sparked after Bitcoin broke below the lower boundary of the large descending triangle it had been caught in throughout the summer months.
Analysts are now pointing to Bitcoin’s historical trend patterns for guidance on where it is heading next and are noting that the current downtrend could cut deeper without jeopardizing Bitcoin’s long-term uptrend.
Bitcoin Likely to Drop Further, But Long-Term Uptrend Remains Strong
It is imperative to note that BTC has been able to find significant buying pressure with each visit into the $7,000 region, which signals that bulls still have some control over the cryptocurrency and are not yet ready to let the recent downtrend extend lower.
It is important to note that BTC’s ability to stabilize above $8,000 has allowed most major altcoins to post decent gains, with Ethereum surging significantly from its recent lows of under $160 to its current price levels within the $170 region.
Many analysts are currently pointing to the bastion of buy orders that currently exist within the mid-$7,000 region as a sign of underlying bullishness for the cryptocurrency, which means that BTC could be establishing a long-term bottom that will ultimately allow it to climb higher.
Josh Rager, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin is currently expressing similarities to its 2013 price action, which could mean that the current downtrend will extend further, but that it will be followed by a firm continuation of its recent uptrend.
“Bitcoin 2013 market compared to 2019. 2013: Bitcoin bull market pulled back 75% over 89 days before a 1600% run-up to new highs later in the year. 2019: Bitcoin has currently retraced 42% over 91 days. Price can continue down but expect the bull trend to continue after pullback,” Rager explained.
Assuming that the 2013 fractal pattern continues to unfold this year, BTC may see further losses in the near-term, but it is probable that the crypto will continue climbing significantly higher in the coming months.