Bitcoin Is Showing A Major Deviation From 2022, Analyst Says This Is A Different Foundation | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure A crypto analyst has revealed that Bitcoin (BTC) could be entering a cycle that looks very different from the one that led to the sharp 2022 downturn. The analyst’s chart review suggests that the current bull market is developing on a stronger foundation, reinforcing the possibility that future corrections may deviate from past cycle patterns.

Bitcoin Shows Deviation From 2022 Bear Cycle Patterns

According to a new technical analysis shared in an X post by pseudonymous analyst DorkChicken on March 14, Bitcoin is showing signs of a different market structure than the setup that led to the massive 2022 crash. The analyst explained that the current cycle is developing on stronger support levels, which could change the market’s trajectory and how it behaves during future corrections in the bear market

Related Reading: The Bitcoin Game Plan That Shows How To Navigate BTC Below $100,000The analyst’s accompanying chart shows Bitcoin on the two-week timeframe, highlighting several large support or consolidation zones that formed across multiple market cycles. One zone formed after the 2018 cycle top, another developed during the 2021 bull market, and a new range appears to be forming in the current cycle near the 2024 to 2026 price area

DorkChicken pointed out that the 2022 bear market crash occurred after Bitcoin fell below $30,000, leaving very little historical support below. The analyst noted that at the time, because the structure below that level was “nothing but open air,” it exposed the market to a much deeper selloff.

Source: Chart from DorkChicken on XIn contrast, the current cycle shows a structure in which Bitcoin builds support step by step as the bull market progresses. The analyst’s chart suggests that instead of moving straight up and leaving gaps underneath, the price has been forming ranges that could act as support if the market corrects later in the cycle

DorkChicken noted that this difference in structure means that the present bull market is built on a stronger foundation than the one seen before the 2022 market crash. Because of this, he suggests that Bitcoin may not follow the same devastating bear market correction as it did in the last cycle

Analyst Asserts BTC Bears Are Done

Following its recovery above $70,000, Bitcoin is showing signs of strength, with analysts predicting another short-term upward move. According to crypto expert ‘Investor Jordan’ on X, Bitcoin’s current bear market may have ended after a recent breakout from a key short-term pattern.

Related Reading: Why The Bitcoin Price Could Surge If The US-Iran War Is ResolvedThe chart analysis suggests that bearish selling pressure is likely in its final stages after BTC’s price cleared an important support level around $74,000. Investor Jordan noted that this level had served as the last major line holding the range, and once BTC cleared it, the structure supporting its bearish outlook was no longer in place

The analyst noted that Bitcoin had previously traded within a Bull Flag formation on the four-hour timeframe. However, now this Bull Flag has broken out cleanly, with price moving above the upper boundary of the range. Following this breakout, Investor Jordan projects that Bitcoin could move to two main targets. The first is the unfilled Chicago Mercantile Exchange (CME) gap between $81,500 and $83,000, before a final run to reclaim the BMSB level above $84,000

BTC trading at $73,745 on the 1D chart | Source: BTCUSDT on Tradingview.comFeatured image from Pixabay, chart from Tradingview.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.