No clear signal for Bitcoin’s price, except for uncertainty. Investors are puzzled as the first cryptocurrency by market cap follows crab-like price action. At the time of writing, BTC trades at $35,935 with sideways movement across the board.
The most bullish expert believes BTC could be forming a Bump and Run Reversal (BRR). In 2018 and 2019, BTC’s price formed this chart structure after major corrections and managed to reclaim the lost territory.
Anonymous analyst “Stillman” compared BTC’s price 2018 3-day chart versus its current 10-hour chart and found similarities that point to a Bump and Run reversal bottom.
— Stillman (@Stillm4n) June 5, 2021
Anonymous trader Polar Hunt concurred with the analyst’s conclusion. The trader believes that “mega drops” in BTC’s price cause apathy amongst investors. This leads to the formation of the Bump and Run Reversal.
We’ve played this game before. #BTC
Mega drops like we had now and back in 2018 causes apathy. pic.twitter.com/zRRrZDJbcA
— Polar Hunt (@polar_hunt) June 4, 2021
As both charts show, this chart structure is comprised of 4 phases: the lead-in phase, which could have been formed in previous months. Later, the bump phase after the price crashes and goes into accumulation.
This phase could extend for months with BTC’s price reaching higher lows in a narrow range and slowly retaking its previous highs. During this phase, the price forms a bowl-like structure as it climbs back to levels seen in the first phase.
When the price starts to leave the bowl range, the chart enters a throwback to trendline before going into an uphill run towards new highs, as seen below.
The structure is still forming and must be validated, but if it consolidates it suggests a long season of bad news for…