The 2022 Bitcoin crash was one for the history books, with the price ranging from $69,000 to $16,000 before bottoming out. The last bear market before the current period, there are many comparisons between the current trend and the previous one. So far, while the price of Bitcoin has tried to hold against the bears, there are similarities to the 2022 bear market cycle that could suggest a repeat of such a crash.
The likes of which say that the price of Bitcoin may fall further
A cryptographic analyst who goes by the name Sherlock on X has noted several similarities found in the Bitcoin price chart that could suggest a repeat of the 2022 cycle. The first was a weekly trend break that occurred after the initial wave of decline. Once that was broken, the floodgates opened for the Bears.
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Next on the list is that Bitcoin has recorded several red weekly candles. Then there was a minor bounce that led to a consolidation in the middle of the trend, as shown by the last jump to $74,000. This green candle pushed the price towards the next resistance. However, the bulls were eventually rejected from this level, which led to an impulsive break from the downtrend.
The last event to occur on the chart is the formation of the upper wick candle. After this was completed and the price was rejected from this level, the next split saw the price of Bitcoin from $30,000 to $17,500 before the next relief, a 40% drop in price.
At the moment, the completion of the top candle is the only thing left for the price of Bitcoin. Sherlock confirms that the digital asset is actually printing the candle. If this happens, it could lead to the same collapse seen in 2022.
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A repeat of this 40% split from the current level could bring the price of Bitcoin back to the $35,000 range. After ending where the bottom of the last bear market was established, it means a drop to $30,000 until the sellers run out.
Interestingly, it was the last down that led to the end of the 2022 bear market. Over the next few months, there was a rapid recovery, and in the year following the bottom, the price of Bitcoin reached new all-time highs.
Featured image from Dall.E, chart from TradingView.com
