Could Bitcoin Defy the Bears? Top Bitcoin Analyst Points to Past Patterns for Hope

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Bitcoin (BTC), the leading cryptocurrency has struggled over the weekend, with its price dropping by 10% and falling an additional 2% in the last 24 hours, reaching nearly $57,117. Currently, bitcoin is in a falling wedge pattern, which traditionally hints at a possible drop. If Bitcoin slips below this critical level, it could tumble to around $54,000. 

Perhaps, Decode a Bitcoin analyst and Elliot wave Technician suggests a possible rebound from its current level citing a past price pattern.

Will History Offer a Bullish Surprise?

In a compelling tweet, a Decode Bitcoin analyst shared a fascinating analysis. Further analysts compared Bitcoin’s current chart with those from August and September of last year. 

Both the charts reveal a similar falling wedge pattern from those months, which initially suggested a possible price drop. Despite this, Bitcoin saw a slight recovery in September, leading to a significant price rally by the end of the year.

A Chance for a Bullish Turn?

The analyst suggests that Bitcoin might be on the brink of repeating this bullish pattern. If Bitcoin manages to hold its ground and surge from the current level, it could potentially reach new all-time highs by the end of this year. 

However, the current candle patterns are echoing those from previous years, fueling hope among investors for a positive turnaround. As Bitcoin grapples with this technical setup, all eyes are on whether it will defy the bearish predictions and potentially soar to new heights. 

Bitcoin Price Analysis

Bitcoin started the month on a bearish note, with its price falling by 10% over the past week. Currently, Bitcoin is consolidating below the $58,000 level after facing rejection at the $59,000 resistance line and the key 200-day moving average, which is also around this price mark. Looking at the chart analysis the market may soon test the $56,000 support level.

However, the RSI indicator has dropped below the 50% mark, signaling a slight bearish momentum. If the $56,000 support fails to hold, a further decline toward the $52,000 support zone is likely.