Bitcoin’s Price Action Shows Similarities to 2016; Pointing to a Bullish 2021
- Bitcoin’s price has been flashing some major signs of weakness throughout the past few days, with bears continuing to defend against a break above $10,500
- This weakness may soon be coming to an end, however, as buyers have now shattered the selling pressure that previously existed at this level
- While looking towards the asset’s near-term price action, one analyst explained that he sees some striking similarities to 2016
- This comparison is bullish because it suggests that the coming year may end up being incredibly positive for the benchmark cryptocurrency
It has been a turbulent past few days, weeks, and months for Bitcoin, with the cryptocurrency attempting to spark a bull trend, but facing some serious resistance.
Currently, BTC is attempting to shatter the resistance that had been suppressing its price action throughout the past few days and weeks, with $10,500 being a crucial level to watch in the near-term.
If buyers are able to break this level and catalyze a strong upwards move in the near-term, it could reverse the recent downtrend that BTC has been caught within.
One analyst is also now noting that he believes there are some striking similarities between BTC’s current market structure and that seen in 2016.
This means 2021 could end up being a great year for BTC.
Bitcoin Shows Signs of Strength as Buyers Shatter $10,500
At the time of writing, Bitcoin is trading up over 2% at its current price of $10,600. This marks a notable rise from recent lows of $10,200 that were set earlier this week.
The entire cryptocurrency market has been flashing some signs of weakness throughout the past couple of weeks, with BTC ardently defending against a break below $9,900 on multiple occasions while most altcoins saw similarly weak price action.
As the benchmark crypto reverses its recent downtrend and begins pushing higher, there’s a possibility that the next leg of the market-wide uptrend may soon begin.
Analyst: BTC Showing Similarities to 2016 Market Structure
While speaking about Bitcoin’s present outlook, one analyst compared the price action seen by BTC throughout 2020 to that seen in 2016.
“If you’d like to compare periods and market cycles, the current state of the market is comparable to 2016. Slow upwards grind, with long sideways consolidation periods. In 2016, several were seen. In 2020, 2021, it’s likely we’ll see that too. Bullish,” he explained while pointing to the below chart.
Image Courtesy of Crypto Michael. Chart via TradingView.
If the market can replicate the price action seen in 2016 and 2017, there’s a chance that this consolidation seen as of late is simply the calm before the storm.
Featured image from Unsplash. Charts from TradingView.