dailyhodl.com
Altcoin Daily host Aaron Arnold is predicting that a massive bullish resurgence could be in the cards for Bitcoin after the corrective event that saw the leading crypto asset plunge over 50% from its all-time high.
In a new video, Arnold tells his 796,000 YouTube subscribers that the technical pattern that BTC formed while it traded between $50,000 and $60,000 from February to May 2021 does not indicate that the top is in for the flagship crypto asset.
“This generally isn’t how markets top, especially in crypto. Markets usually top with a blowoff top. Something like this (January 2018). Something like this (2013). Just looking at the shape of the price chart, this isn’t normally how we enter a bear market.”
During the 2017 bull market, Arnold highlights that Bitcoin went through multiple corrective events that sliced the value of BTC by 29% to 38%.
“Keep in mind Bitcoin holders, this literally happens every cycle. I’m talking about the final shakeout before the next leg up. Actually, taking a look at just the last cycle, it has happened multiple times, at least one, two, three, four, five, six, where there’s a final shakeout and after that, the next leg up in the market. Bitcoin rising higher after the final shakeout.”
As for the possibility that BTC could be entering a bear market after it lost over 50% of its value from its all-time high of $64,000, Arnold notes that during the 2013 bull market, Bitcoin collapsed by 83% in the middle of the cycle.
“I don’t think we’re going to correct 83% this time… I personally don’t think so. I think what we’re seeing is a combination. History is rhyming. It’s not exactly like 2017. It’s not exactly like 2013. Somewhere in the middle and history is rhyming just like that.
Personally, I’m a buyer here… If you look at on-chain metrics, they overwhelmingly show that is it the new Bitcoin holders who are selling to the people who have been around for years… Weak hands, new hands, new coiners are selling to old hands, to long-term hands, to the strong.”
The crypto analyst also highlights that based on historical price action and technical indicators, a 10x explosion is within the realms of possibility for BTC.
“Keep in mind, the last time we closed this low, below the 21-week EMA (exponential moving average), Bitcoin rose 1,100%.”
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