Bitcoin Could Be Following a Familiar Market Structure, Says Crypto Analyst

A well-known crypto analyst suggests that Bitcoin might be mirroring a market pattern from 2019, where the cryptocurrency consolidated for several months before experiencing a parabolic surge.

In a recent video update, Jason Pizzino, a crypto strategist with a substantial YouTube following, explains to his 323,000 subscribers that Bitcoin’s current journey to new all-time highs resembles its price action in 2019. Back then, Bitcoin surged by approximately four times its value before taking a break for six months.

Pizzino draws a comparison between Bitcoin’s recent move from $25,000 to $74,000 in just a few months and the “fakeout rally” witnessed in 2019. He suggests that Bitcoin may undergo a multi-month consolidation phase before entering the next phase of the bull market.

The analyst emphasizes that the emotional response and market sentiment in 2019 were similar to what we are seeing now. Although the initial expectation was for a prolonged bear market, Bitcoin’s extreme upward movement led to a lengthy consolidation period. Pizzino highlights that there were six months of decline, followed by a couple of months of recovery, the advent of COVID-19, another five months of growth, a subsequent correction, and finally, a surge into a major bull market.

Pizzino also keeps a close eye on key price levels to determine Bitcoin’s likely trajectory in the near future. He notes that if Bitcoin faces rejection around the $67,000 to $69,000 range, which corresponds to the old all-time high, the cryptocurrency may experience a pullback. This could lead to increased bearish sentiment and a consolidation phase ranging from $50,000 to $70,000, rather than a consolidation between $60,000 and $80,000.

To gain further insights, Pizzino advises monitoring the price levels at $59,000 to $60,000 and the $67,000 to $69,000 range. A rejection at $69,000 could potentially trigger a break below the $60,000 support level, with Bitcoin falling to around $58,530.

As of the time of writing, Bitcoin is trading at $63,200, experiencing a decline of over 3% in the past 24 hours.

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