Bitcoin’s price is showing positive momentum once again by surpassing the $100,000 mark and continuing its upward trajectory. This revival comes as market sentiment improves, reflecting the leading cryptocurrency’s historical trends. A crypto analyst has indicated that Bitcoin’s current performance closely matches a significant pattern observed four years ago, which often signals the onset of bullish markets.
Return of the 2020 Bitcoin Price Pattern
In a recent TradingView article, analyst TradingShot pointed out that Bitcoin’s current movements are reminiscent of its trends in 2020. The fluctuations seen today parallel past patterns, particularly in terms of accumulation and distribution behaviors.
During the accumulation phase, which took place from May to August 2020, Bitcoin experienced initial growth. A similar accumulation phase has emerged from March to September 2024. This accumulation period led to significant price increases, notably from below $70,000 to over $100,000, echoing the past surge from under $9,000 to above $12,000 in 2020.
Both periods were followed by distribution phases, where Bitcoin’s price faced downward and sideways trends for several months. This trend aligns with what was observed in the transition into early 2025, which mirrors the situation from August to October 2020. With the second accumulation phase wrapping up, a potential breakout for Bitcoin could be on the horizon.
Currently, Bitcoin has crossed the Pivot trend line that distinguishes this distribution from the latest accumulation trend. When the analyst made their observations, Bitcoin was testing the $97,000 level as it entered a retest phase. Since then, it has successfully surpassed this retest zone, indicating a rising trend.
At present, the 50-Day Moving Average at $97,100 remains a crucial support level for Bitcoin. Maintaining this level is essential for the bulls to sustain the ongoing price increase. The analyst noted that if this support holds, Bitcoin could replicate the rally seen from October 2020 to April 2021. Additionally, the similarity in RSI sequences further suggests that Bitcoin may continue to follow this trend.
If the fractal pattern unfolds as anticipated, Bitcoin’s price target could reach $150,000 this cycle. Other broader developments, such as the Fed’s decision to maintain current interest rates, have also encouraged investors to take on more risk through assets like Bitcoin.
