Is bitcoin following the 2020 pattern?

This idea wants to analyze a possible scenario. The left graph shows the situation in March 2020. Many people probably remember this period when bitcoin corrected by 50% in just one day.

We are not going to say that this will happen, but in fact the situations are very similar. Both then and now the situation from the technical analysis side looks very weak. Now the price is also moving in small rising candles and showing weakness on the buyers' side. In case of a break-down of the wedge, the price can go down, at least to the level of $29K.

Many Glassnode, Santiment and Whalemap fundamentals also speak about the weakness of the market.

If we analyze from the side of our trading system (green areas on the chart), you can see that the system showed an entry a few days ago, but today at the close of the daily candle there might be an exit. We use the trading leverage, with a high probability this trade will close with a small profit, but the point is that this is another negative signal for the rise of bitcoin.

At the bottom we have a marked fundamental value zone for bitcoin and altcoins. This would be the best place to buy. We wrote about this in more detail in last week's trading idea. Go over and find out where and why it's best to buy bitcoin and altcoins 👇👇👇

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