of bitcoin current price structure This is leading to a re-evaluation of how this cycle is being interpreted. The only place to look for clues is the past, and an interesting technical analysis shows that Bitcoin’s current pattern resembles the slow, methodical buildup that defined 2017.
A long-term chart built around a linear regression channel shows that Bitcoin Maybe still in the preparation stage, With one major technical hurdle separating today’s consolidation from turning into a powerful rally.
Linear Regression Line Stops Breakout
technical analysis of Bitcoin price action posted by crypto analyst CW on Notably, Bitcoin’s most aggressive bullish phase depicted on the chart began only when the price broke solidly above the regression trendline.
In the 2017 cycle, Bitcoin spent a long period consolidating below this line before eventually moving above this line. Once this breakout occurred, the price entered a strong rally phase that lasted for a year. This move ultimately took BTC from below $1,000 to nearly $20,000 in a relatively short time frame.
The 2021 cycle, on the other hand, showed a different behavior. Bitcoin’s price structure rose faster than ever before, breaking trend resistance early and reaching a peak of $69,000 without the same extended base formation seen in 2017.
According to the chart, the current cycle is yet to produce a decisive break above Linear regression fit. Although Bitcoin has already made a new all-time high above $126,000 on its general price chart, the price is still respecting this long-term trend line as the upper limit, and it is a sign that a major extension phase is yet to come. Therefore, the view is that the real rally will begin only when this hurdle is crossed with conviction.
BTC price chart. Source: @CW8900 on X
Structure points to a breakout setup to $500,000
According to this linear regression fit, Bitcoin is still in the accumulation phase. This claim is due to the prolonged consolidation below the green regression trendline in the above chart. Right now, BTC is Near the red support trendline, And the next approach is to bounce from support.
The red support trendline on the chart has repeatedly served as a floor during pullbacks over several cycles. Whenever Bitcoin has tested or approached this zone, it has coincided with periods that later proved to be significant accumulation phases.
If history repeats in 2017-style, the key rally moment will be a breakout above the green linear regression fitted trendline, followed by a push back to the purple resistance trendline. According to the projection shown on the chart, such a move would position Bitcoin Trajectory that targets the $500,000 range Before meeting that resistance trend line.
Featured image created with Dall.E, chart from tradingview.com
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