A closely followed analyst believes that Bitcoin’s (BTC) current market structure appears to be mirroring a setup that emerged prior to the crypto king’s bull market in 2020.
Pseudonymous analyst TechDev tells his 413,100 Twitter followers that Bitcoin’s monthly chart looks similar to BTC’s price action from about three years ago before the top crypto erupted from around $10,000 to above $60,000.
The trader shares a chart showing the similarity between the two setups, which includes a break of the bear market resistance and a retest of horizontal support.
“We’ve seen this monthly Bitcoin setup before.
At the start of the last impulse.”
Looking at TechDev’s chart, it appears that the monthly support for BTC is around $25,000. At time of writing, BTC is trading for $25,723.
The analyst also shares an inverse chart of Bitcoin to show that BTC remains in a clear uptrend on the high timeframe.
“Longing this still seems risky. Bitcoin.”
Looking at TechDev’s chart, it appears that Bitcoin’s price and relative strength index (RSI), a momentum indicator, have broken below their respective diagonal supports. Since the analyst is using an inverse chart, the breach of the support levels suggests that price and momentum are on the side of BTC bulls.
The chart also shows that TechDev expects Bitcoin to rally to a fresh all-time high close to $80,000.
Generated Image: Midjourney