- Bitcoin bounced off $82,000, a move analysts compare to a reversal of the 2021 crash pattern.
- Santiment data shows retail “fear” is peaking, historically a strong contrarian buy signal.
- However, Glassnode warns Bitcoin is in “no-man’s land” below the short-term holder cost basis.
Bitcoin’s bounce off support above $82,000 over the weekend is reflecting on BTC price today, leading several analysts to confront the suspicion of a BTC bull run in its early stages. One such analyst has identified a repeat of Bitcoin’s 2021 behavior that led to the bear market, only that this time, the cryptocurrency defended the support for a potential reversal.
Related: Texas Buys the Bitcoin Dip: First U.S. State to Start Building a BTC Reserve
2021 Bitcoin fractal and why the bounce is different this time
Analyst Merlijn highlights the similarities in market structure. The price action mirrors the consolidation phase seen before the 2021 collapse. The key difference today is the successful defense of support.
To confirm a bullish reversal, Bitcoin must now break the downward trendline of its current descending triangle. A breakout above this resistance would flip the market structure back to bullish.
Bitcoin’s Encouraging Bounce Back
In the meantime, a Santiment analyst described Bitcoin’s latest recovery as an “encouraging bounce back.” The analyst noted that many crypto traders are paying attention to ongoing developments while investigating the latest Bitcoin price decline to ascertain if the latest drop was the best opportunity to buy BTC under the current circumstances.
The analyst revealed, using data from Santiment, that the majority of retail traders are predicting a bear market for Bitcoin. However, he noted that historical data show that the cryptocurrency typically initiates a reversal when bearish sentiments and FUD are at their peak. According to him, such scenarios lead to a bounce in Bitcoin’s price and subsequent liquidation of short positions placed by the pessimists.
Is Bitcoin in No-Man’s Land?
Meanwhile, Glassnode’s data suggests that Bitcoin is currently in no-man’s land. In its latest update, the analysis platform highlighted the cryptocurrency’s position beneath short-term holders’ realized prices, which coincides with deeper realized levels. BTC needs to climb above these indicators to confirm its structural recovery and establish a base for a fresh bull run.
TradingView’s data reveals that Bitcoin traded at $87,725 at the time of writing, reflecting a 9% rally from the latest pullback.
Related: Bitcoin Rebounds to $89,200, XRP Soars 11%, Global Market Tops $3.02T
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Source: https://coinedition.com/bitcoin-defends-82k-validating-bullish-2021-fractal-setup/
