Bitcoin price action looks very similar to 2016: small correction ahead before a face-melting rally


  • Bitcoin price tried to break the all-time high but couldn’t manage to do it on all exchanges just yet.
  • The current price action looks very similar to previous Bitcoin rallies.

On December 1, Bitcoin attempted to crack the previous all-time high but only managed to do so on a few exchanges. The current price action resembles what happened back in 2017 when Bitcoin tried to crack the all-time high at the time at $1,177 and briefly managed to climb above it just to fall within the next few days.

Is Bitcoin on the verge of another insane rally?

Back on November 25, 2013, Bitcoin established a high of $1,177, which made the digital asset quite popular among social media and news outlets. Bitcoin had a two-year consolidation period until November 2015. 

btc price

BTC/USD weekly chart

On January 2, 2017, Bitcoin price attempted to crack the all-time high of $1,177 and managed to do so, climbing to $1,180 but ultimately getting rejected, dropping 36%. Additionally, it seems that both times the TD Sequential indicator presented sell signals.

btc price

BTC/USD weekly chart

The current price action is definitely similar as Bitcoin did crack the last all-time high by a couple of dollars on some exchanges and retraced shortly after. The TD Sequential indicator also presented a sell signal, which means Bitcoin price might need to retrace even further before the final push.

Charles Edwards, founder of Capriole Investments, notes over Twitter that Bitcoin’s trend with Total Production Cost is also very similar to 2016. This metric basically uses Bitcoin’s electricity consumption as a reference. Currently, this metric is really close to the current price, which indicates the downside is limited.

btc price

Bitcoin MVRV chart

On top of that, social sentiment has increased significantly over the past months, usually indicative of potential pullbacks. The MVRV chart is also remarkably similar to what happened during the top of the 2019 bull run. Bitcoin has just hit 65%, which was followed by a correction last time and then a final breakout. Considering all of these metrics, it certainly seems that the flagship cryptocurrency is ready for a breakout above the all-time high but might need to consolidate first. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA targets 900% bull rally, but it must clear $0.33 first

Cardano had a significant rally towards $0.355 at the beginning of 2021. After a notable dip to $0.228, bulls bought it and managed to push Cardano price to $0.33 again before a small rejection.

More Cardano News

Ethereum price aims to flush out doubters before the ultimate breakout to $2,000

Ethereum bulls bought the dip on January 11, pushing the digital asset from a low of $915 towards $1,256. The smart-contracts giant has been outperforming Bitcoin in the past 24 hours despite the negativity seen on social media.

More Ethereum News

XLM Price Prediction: Stellar consolidates ahead of a 30% move

XLM price trades at $0.291 at the time of writing after a healthy consolidation after hitting a 2021-top at $0.411. There is a high chance that XLM is about to see a massive breakout or breakdown within the next 24 hours.

More XLM News

Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. The panic sell-off was stopped on its tracks at the 26-EMA on the daily chart as bulls quickly bought the dip and created a V-Shape recovery pushing BTC towards $40,100 again. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP