Bitcoin Price Patterns Mirror 2021 Trends, Potential Bearish Correction Ahead

Bitcoin may face a significant downturn as October 2024 price movements resemble those of April and November 2021. Key support levels are $55,000, $44,000, and $36,000. Meanwhile, mid-cap and small-cap coins continue to rally.

Bitcoin Trends Mirror 2021, Indicating Potential Downturn

Bitcoin may be on the verge of a major market correction as analysts identify similarities between its current price trends and those seen in 2021. According to a recent analysis by popular trader Alan Santana on TradingView, the cryptocurrency market could see a bearish shift if these patterns persist.

2021-2024 Parallels

Santana draws a comparison between Bitcoin’s price movements in April and November 2021 and the current market behavior in October 2024. In both 2021 cases, prices initially surged, creating a bullish sentiment, only to reverse sharply by the end of the month, marking the beginning of a bear market. Santana points out that the presence of a Doji candlestick—a pattern that indicates market uncertainty—preceded the downturns in 2021 and has now appeared again in October 2024.

If October closes with a red session, Santana warns, Bitcoin could see a prolonged bearish trend, with critical support levels to watch at $55,000, $44,000, and $36,000. A drop below these thresholds could spell further losses.

Smaller Coins Continue to Rally

While Bitcoin and other major cryptocurrencies like Ethereum are under pressure, Santana notes that mid-cap and small-cap altcoins are showing resilience. These coins continue to rally, even as larger market players face headwinds.

Competing Analysis Predicts Bitcoin Surge

Despite Santana’s bearish outlook, not all analysts agree. Caleb Franzen, founder of Cubic Analytics, offers a more optimistic view, predicting that Bitcoin could soon experience a major price breakout.

Franzen’s forecast is based on the 120-day Williams%R Oscillator, a tool that measures momentum. According to Franzen, past breakouts in this oscillator have accurately predicted Bitcoin’s surges. He points to examples from January and October 2023, where Bitcoin rose 48% and 123%, respectively, within a few months after similar signals.

At the time of writing, Bitcoin is trading at $66,344, having dropped 1.80% in the past 24 hours. The market remains divided on whether the next move will be up or down, but the month’s end could provide critical insights.

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