Bitcoin price has been the most discussed topic in recent times as the asset has been displaying unpredictable price movements nowadays. While the asset is expected to hit its immediate resistance, the price drops heavily & when the price was on its way to hit the local support, the price rebounded finely.
Therefore, considering the recent price movements, some speculate the asset to be within bearish captivity and poised to drop hard. However, some of the facts do point out the predictions to be not less than any misconceptions.
Therefore, now is the time to provide some context on the BTC price rally considering all the previous rallies where the asset marked the ATH. To begin with, 2 things need to be carefully looked at,
- Bitcoin price went sideways to hit its ATH
- Secondly, the previous pointy blow-off tops are now compared with a flat distribution top
Firstly, no doubt the current chart pattern is extremely bearish in reality. It is also a proven fact that the BTC price reached the ATH around $69,000, moving sideways, actually correcting from the April 2021 top.
The pink wave in the above chart substantiates the flow which is at an all-time low alignment. While the previous rallies, having the different colour codes above underwent a similar structure but further underwent a parabolic move within the alignment.
Secondly, the comparison between the rallies needs to be done by the actual money flown into Bitcoin. This is measured by an on-chain indicator ‘Realized Price’. If the above alignment is kept by the ATH and scaled with realized price, it appears even more bullish even in terms of downside potential.
The above cycles are aligned by April 2021 top, scaled by realized price. No doubt, the structure does point out some downside potential between 17K to 13K, but $10K or below appears improbable. It has to be noted that the lows were reached on the initial drop below the realized price.
Therefore, we can definitely expect a further sideway trend ahead and to register new lows, the markets need to undergo a major capitulation event. However, these events are very rare and it appears that they have already passed away.
Hence, the Bitcoin(BTC) price may eventually rise high but after moving a little sideways. The star crypto, currently displays fewer chances of plunging below $10,000 as a hefty bearish pressure is required to accomplish the task.