Bitcoin's 2021 Chart Echo: Traders Shrug Off Bearish Signals
Bitcoin Chart Resemblance to 2021 High Sparks Debate
A crypto trader has pointed out that Bitcoin's (BTC) current price action closely resembles the pattern seen before its all-time high of $69,000 in November 2021. However, this observation is met with skepticism from other market participants.
Technical Analysis vs. Market Fundamentals
Technical analysts frequently look to historical Bitcoin price charts to identify potential peaks, optimal selling points, and opportunities for rotating capital into altcoins. Crypto trader Nebraskangooner noted the similarity on X, highlighting a potential double top formation, which is often interpreted as a bearish signal.
Analyst Benjamin Cowen concurred, suggesting a recurring pattern in Bitcoin's post-halving cycles: "Up in July-Aug. Down in Sep. Up into the market cycle top in Q4. Bear Market."
Counter-Arguments: Treasury Demand Overrides Charts
However, not all traders are convinced. Kale Abe argues that these chart-based predictions are becoming less relevant. According to Abe, the primary driver of Bitcoin's price is now the activity of crypto treasury companies. "The only thing that matters is the treasury companies and if they are out of ammo or not," Abe stated.
BitcoinTreasuries.Net data indicates that publicly traded companies hold $150.98 billion worth of Bitcoin in their treasuries, demonstrating significant institutional demand.
Abe also dismissed the likelihood of a bear market, pointing to Ether's (ETH) proximity to its all-time high. Ether is currently trading around $4,612, up 19% in the last week, and approximately 5.75% below its 2021 peak of $4,878.
Veteran trader Peter Brandt recently told Cointelegraph Magazine that relying solely on charts for price predictions is often misleading, emphasizing that charts are best used for understanding past and present price levels.
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