Why Bitcoin’s Ongoing Rise “Retesting” Could Lead To New Highs

Bitcoin’s price is still well below its previous record, but the top cryptocurrency, set by its market capitalisation at the time of writing, is in another attempt to regain lost support near record highs at the start of the year.

“Repeated testing” has so far been held above a significant level, and this time it almost certainly looks different compared to past peaks in the crypto Sunday. If a repeat of the pattern leads to other consequences, it remains to be seen, but this time a unique result will mean rising to new heights.

The four most expensive words:”this time everything is different”

According to Sir John Templeton, the most dangerous idea of investing is the assumption that “this time it’s different.” Markets are cyclical, and price movement often shows fractal models. Even bitcoin itself seems to be repeated in cycles every four years, based on an established emission mechanism called halving.

What is the reading / bear market by topic ? Bulls Now “Control”Any Bitcoin Timeframe

Despite this predictability, the way the cycle unfolds can manifest itself in unique ways. The 2014-2015 bear market, for example, represented a deep, rounded structure that led to a sharp rise and peak in 2017. A failed repeated test resulted in lower highs and a falling triangle pattern that eventually broke.

Retesting old support turned into resistance as it continued / source: btcusd TradingView.com

In 2019, bitcoin has recovered from the latest bear market dip and started a new cycle in cryptocurrencies. After reaching a previous all-time high in the same year, the remaining Resistance led to another failed retest and a steady phase of decline.

Bitcoin has been rewarded again, but this time the next retest seems to be underway, which could lead to new highs.

Lack Of Resistance Could Push Bitcoin Back To Price Opening

Lack of resistance at this stage of the cycle may lead to a different outcome than the last two peaks, despite Sir Tem

Join the Discussion

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
  • Back to top