Bitcoins current price structure will lead to reconsideration of this period. The only place to look for signs is the past, and interesting technical analysis shows that Bitcoin’s current pattern resembles the slower and more methodical formation that defined 2017.
A long-term chart built around a linear regression channel shows that Bitcoin may still be in preparation, with a major technical barrier separating today’s consolidation from what could turn out to be a powerful rally.
A linear regression line intercepts the break
Technical analysis Bitcoin price action on X, published by crypto analyst CW, is the leading cryptocurrency action fitted in a linear regression with clearly defined support and resistance bands spanning ten years. It is worth noting that the most aggressive phases of the Bitcoin bulls depicted in the chart began only after the price had convincingly risen above the regression line.
During 2017, Bitcoin consolidated for a long period below this line before finally pushing it. After this breakout occurred, the price entered a strong phase that lasted for a year. This move ultimately took BTC from $1,000 to nearly $20,000 in a relatively short period of time.
On the other hand, the period of 2021 showed a different behavior. Bitcoin price action moved faster in the structure and quickly broke above trend resistance, reaching a peak of $69,000 without the same broad base formation seen in 2017.
The current cycle, according to the diagram, has still to produce a decisive break above linear regression is appropriate. Although Bitcoin has already made an all-time high of $126,000 on its regular price chart, the price still respects this long-term trend as a ceiling, indicating that a major expansion phase is still ahead. Therefore, the perspective is that true rallying will begin only after this obstacle is overcome by faith.
BTC price chart. Source: @CW8900 On X
The structure refers to 500,000 US dollars
With this linear regression fit, Bitcoin is still in the accumulation phase. This confirmation is due to the long-term consolidation under the green retracement trend in the chart above. Currently, it is BTC approaching the red support line, and the future perspective is a support jump.
The red support trend on the chart has repeatedly acted as a floor during the retracement in several cycles. Whenever Bitcoin tested or came close to this zone, it coincided with periods that were later significant periods of accumulation.
If history repeats itself in the style of 2017, the key moment of the rally will be a breakout above the corresponding green linear regression trend, followed by a push to the purple resistance trend. According to the forecast shown in the chart, such a move will make Bitcoin at a trajectory targeting the $500,000 range before reaching this resistance trend.
Featured image created with Dall.E, chart from Tradingview.com
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