According to recent analysis, Bitcoin (BTC) will have “at least one more upward impulse” before reaching its all-time high in this halving cycle.
Common analyst TechDev stated that, contrary to popular belief, there is nothing special about BTC/USD in 2022 in a series of tweets concerning the current condition of BTC price action.
Bitcoin in 2021: Nothing to see here
With a 40% drop from November’s all-time highs of $69,000 still underway, sentiment has taken a knock – both Bitcoin and altcoin markets are still characterised by “severe dread.”
TechDev, who is known for his upbeat views on Bitcoin, has no need to be concerned.
He demonstrated that the previous year’s pattern — fresh wallet address numbers making lower highs as price makes greater highs — is far from unique.
“We noticed divergence in 4 out of the 6 corrections when the price reached higher highs and new addresses made lower highs,” said one commenter on two posts.
“…All six, in my opinion, are in the midst of ongoing corrections, which are aided by dropping volume.”
Because of a lack of liquidity, the low volume has previously made news as part of concerns that BTC/USD could experience excessively large changes.
Overall, price behaviour in relation to Fibonacci levels has remained well within historical norms, according to TechDev. And there is no reason to believe that another all-time high will not occur before a bearish phase begins.
“Our current correction (since February 2021) is occurring between the same two-cycle log fibs. As a running correction has always occurred, with locally dropping volume and new addresses,” he said.
A recovery in waiting
Bitcoin’s popularity has declined over the last year, particularly among retail investors, as previously reported.
Seasoned traders, on the other hand, remain poised. With leverage still around all-time highs and institutions expected to re-enter the market.
Meanwhile, in Q4, TechDev began emphasising trends in Bitcoin’s relative strength index (RSI). Which indicated that a new all-time high was approaching.
According to research, the RSI for BTC/USD remains highly “oversold”. Which has always resulted in a reversal and upward price pressure in the past.
