Bitcoin Current Pricing Structure It calls for a reassessment of how this cycle is being interpreted. The only place to look for clues is in the past, and interesting technical analysis suggests that Bitcoin’s current pattern resembles the slower, methodical build-up that defined 2017.
A long-term chart built around a linear regression channel shows that Bitcoin is It may still be in the preparation stage, but There is one major technical barrier separating today’s consolidation from what could be a powerful rally.
Linear regression line that prevents a breakout
technical analysis Bitcoin price action published on X by cryptocurrency analyst CW looks at the price action of leading cryptocurrencies fitting a linear regression. Clearly defined support and resistance levels go back more than a decade. Notably, Bitcoin’s most aggressive upward phase, depicted in the chart, began only after the price clearly crossed the retracement trendline.
In the 2017 cycle, Bitcoin spent a long time consolidating below this line before finally crossing it. Once this breakout occurred, the price entered a powerful rally phase that lasted a year. This move helped BTC rise from less than $1,000 to nearly $20,000 in a relatively short period of time.
On the other hand, the 2021 cycle showed a different behavior. Bitcoin’s price action moved faster early in the structure, breaking trend resistance sooner and reaching the $69,000 high without forming the same extended base as in 2017.
According to the chart, the current cycle is: A decisive breakthrough has not yet been achieved Linear regression fit. Bitcoin has already hit a new all-time high above $126,000 on the normal price chart, but the price is still respecting this long-term trendline as an upper limit, a sign that a major expansion phase is yet to come. Therefore, it is predicted that a true rally will begin only after this barrier is confidently removed.
BTC price chart. Source: @CW8900 On
The structure points to a breakout setup up to $500,000.
According to this linear regression analysis, Bitcoin is still in the accumulation phase. This argument is due to a long-term consolidation taking place below the green regressive trendline in the chart above. Now BTC is Approaching the red support trend line, The next outlook is a rebound in support.
The red support trend line on the chart has repeatedly served as a bottom during several cycles of decline. Each time Bitcoin was tested or moved into this area, it coincided with a period that later proved to be a significant accumulation phase.
If history repeats itself in 2017 style, the key rally moment will be a breakout of the green linear regression fit trendline followed by a push towards the purple resistance trendline. According to the predictions shown in the chart, such a move would put Bitcoin in the following situation: Trajectory targeting $500,000 range Before hitting the resistance trend line.
Featured image created with Dall.E, chart from Tradingview.com
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