Bitcoin’s Current price structure It prompts us to reevaluate how we interpret this cycle. The only place to look for clues is in the past, and interesting technical analysis shows that Bitcoin’s current pattern resembles the slower, more systematic rise that characterized 2017.
A long-term chart built around a linear regression channel shows that Bitcoin It may still be in the preparation stage, but There’s one big technical barrier between today’s stock rally and what could be a strong rally.
Linear regression line to prevent breakouts
technical analysis Bitcoin Price Trends, posted by crypto analyst CW on Remarkably, Bitcoin’s most aggressive bull phase depicted on the chart only began after the price convincingly broke above the regression trendline.
During the 2017 cycle, Bitcoin continued to consolidate for an extended period of time until it fell below this line, and finally broke through it. Once this breakout occurred, prices entered a strong uptrend that lasted for a year. This move ultimately took BTC from less than $1,000 to almost $20,000 in a relatively short time frame.
The 2021 cycle, on the other hand, showed a different dynamic. Bitcoin price action moved faster earlier in the structure, breaking through trend resistance sooner and reaching a peak of $69,000 without the extended base formation seen in 2017.
According to the chart, the current cycle is: It has not yet reached a decisive break. Linear regression fit. Although Bitcoin has already hit a new all-time high above $126,000 on the regular price chart, the price still respects this long-term trendline as a ceiling, indicating that a major expansion phase is yet to come. Therefore, we believe that a real rise will only begin once this barrier is confidently cleared.
BTC price chart. Source: @CW8900 On X
Structure shows a breakout setup to $500,000
According to this linear regression fit, Bitcoin is still in the accumulation phase. This assertion is due to an extended consolidation below the green regression trendline in the chart above. The current BTC is approaching the red support trend line, And the next outlook is a rebound from the support.
The red support trend line on the chart acted as a bottom during the decline repeatedly over multiple cycles. Every time Bitcoin tested or approached this area, it coincided with a period that later turned out to be an important accumulation phase.
If history repeats itself like it did in 2017, the key bullish moment will be a break above the green linear regression fit trendline, followed by a push up to the purple resistance trendline. According to the predictions shown in the chart, such a move could push Bitcoin Trajectory targeting $500,000 range before meeting that resistance trend line.
Featured image created by Dall.E, chart on Tradingview.com
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