As Bitcoin returns above $80,000 Lots of interesting views From the following point of view. Crypto analyst Merlijn The Trader said the current structure looks similar to Bitcoin’s fake events in 2017 and 2021. Bitcoin’s price briefly fell below the support line, but quickly recovered and rose higher. This setup now raises the question of whether the recent collapse was just another downturn before Bitcoin’s next major move.
Bitcoin is setting up a similar price structure.
To understand why Bitcoin exists today: The pricing is interesting. It helps us reexamine what happened in 2017 and 2021. In both cycles, BTC rallied above the horizontal zone. However, the price reversed and fell below the bottom, resulting in a fakeout.
Traders who placed their line in the sand at that level were stopped. But that wasn’t the end. In both cases, the fake breakdowns arrived in the middle of the trip rather than at the end. After changing direction, BTC rallied to a new all-time high.
According to cryptocurrency analyst Merlijn: Bitcoin is probably A similar structure will be built in 2025. The recent break above $80,000 may have been a pre-expansion fake. The next expected move is a sharp decline below support followed by an immediate recovery back into the range.
Beware of BTC traps
A fakeout means that Bitcoin reverses its rally and then enters the green support zone, shaking off the weakness and convincing the market that a deeper bearish move has begun. This move will see BTC It could fall below $60,000. The bullish part of the setup will only happen if BTC reclaims that support area quickly.
Bitcoin’s current position makes the setup more sensitive as the cryptocurrency is currently trading around the $80,000 level. This area has become a technical line that traders use to determine whether the recovery can continue.
Although Bitcoin recorded its first weekly close above $80,000 since January, the market is not yet completely out of the woods. Move above $82,000 It will support optimism While opening the door to further upside, the bearish trajectory depends on BTC falls below $78,000.
nevertheless, The final outlook is optimistic Especially if BTC continues to follow its 2017 and 2021 playbook. Analysts’ predictions point upwards from the current structure, exactly the same parabolic move along the same setup in the previous two cycles. As analysts see it, this setup is expected to eventually lead Bitcoin to new highs above $242,000. As of this writing, BTC is trading at $80,790.
Featured image from Getty Images, chart from Tradingview.com
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