Bitcoin (BTC), 'Deja Vu' Right Before a Past 400% Rally... Will it Break All-Time High This Time Too?

▲ Bitcoin (BTC)

Bitcoin (BTC)'s current price movement is forming a technical bottom similar to the recovery cycle that led to a 400% surge in the past. An analysis suggests that the pattern emerging after a major downtrend will lay the groundwork for a new all-time high.

According to crypto media outlet CryptoPotato on October 1 (local time), technical analyst Frank Cappelleri compared Bitcoin's current cycle's approximately 54% decline pattern to the 2022-2023 cycle, which saw a 70% crash. Cappelleri stated, "This looks like another bullish pattern to me," and diagnosed, "Bitcoin can rise strongly once it gains momentum." The long downtrend at that time concluded with a major upward breakout, leading to an explosive rally of approximately 400%.

However, the analyst did not definitively state that the same 400% return would be replicated this time. Cappelleri explained, "I am not calling for a 400% rise itself," but added, "I am watching a very similar technical foundation that could eventually return Bitcoin to new all-time highs." He further added, "Bitcoin has responded exceptionally well to past technical analysis indicators," emphasizing that past price behavior seen on charts can never be ignored.

Bitcoin saw a slight increase of about 1% over the past 24 hours and maintained a sideways trend on a weekly basis. It rose approximately 10% over 14 days and about 7% over 30 days, but is still about 27% lower compared to a year ago. Meanwhile, Bitcoin's third-quarter gain recorded approximately 42%, marking its best third-quarter performance since 2017.

Experts diagnose that if the bottoming pattern of past cycles is replicated, Bitcoin could secure additional rebound momentum after consolidating strong selling pressure. Market attention is focused on whether the validity of technical signals will be confirmed and lead to a long-term trend reversal.

[Key Article Summary]

-Frank Cappelleri analyzed that the current Bitcoin chart matches the bottom pattern that led to a 400% surge in the past.

-Although it does not guarantee the same magnitude of increase, he assessed that a similar technical foundation for breaking new all-time highs has been formed.

-Bitcoin rose 42% in Q3, recording its best performance since 2017, and is now in a long-term bottoming phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*