Bitcoin, the world’s largest cryptocurrency, has experienced a noticeable price drop over the past two days, from a high of $63,000 to a low of $57,000. This decline can be considered as unexpected as it is for many.
So far, crypto analysts are reassessing their views on Bitcoin. Despite no hope of a bullish catalyst in sight, some analysts believe this continued decline could be a temporary setback in a larger bullish trend.
Bitcoin Drop Suggests Setup for Massive Rally?
Renowned crypto analyst Javon Marks recently shared his updated view on Bitcoin, suggesting the recent dip could be a short-lived pullback rather than the start of a long-term downtrend.
According to Marks, Bitcoin is showing several bullish patterns that point to a recovery to the $65,000 level. He emphasizes that while the current decline is significant, the broader market structure remains intact.
Marks highlighted that one of the bullish patterns seen on Bitcoin’s short-term chart points to a potential reversal that could lead to a recovery above $65,000.
He further explained that on a larger scale, another bullish formation suggests a possible 21% upside from current levels, which could potentially push Bitcoin’s price to over $73,000. This optimistic outlook is based on historical patterns and technical indicators that suggest Bitcoin may be gearing up for a strong recovery.
One of several #Bitcoin The short-term bullish patterns of (BTC) are present here, suggesting that the recent pullback is temporary and a recovery back to $65,000!
On a larger scale, another bull pattern continues to point to over 21% upside from here to $73,000+… https://t.co/sDVnmZbkIo pic.twitter.com/4k1rJV5EYU
— JAVON
BRANDS (@JavonTM1) August 28, 2024
Was the dip anything unusual?
While some investors may be concerned about the recent downturn, other analysts are encouraging calm. Mustache, a well-known figure in the crypto analytics community, compared the current market situation to Bitcoin’s performance during the 2020 COVID-19 crash.
He pointed out that the current decline resembles the market behavior observed during that period and would eventually lead to a significant recovery.
Mustache shared charts comparing the 2020 COVID crash to continued market performance in 2024, focusing primarily on the similarities between Bitcoin’s price action during these two periods.
He noted that despite the short-term volatility, Bitcoin’s price movements in 2024 appear to follow a similar pattern to the 2020 recovery. According to Mustache, this is a positive sign indicating that Bitcoin could recover quickly, a reflecting the surge after the 2020 crash.
Featured image created with DALL-E, Chart from TradingView