There’s no doubt that Bitcoin’s price action has been weird over recent weeks. As the S&P 500 has entered a range, so too has the cryptocurrency.
In the past week, BTC has literally traded in a 5% range. And over the past two months, the asset has been stuck in a 15% range.
Although this seems to be the first time Bitcoin has traded like this in a while, some are likening the recent price action to 2020’s February highs.
Similarities Between Bitcoin’s 2020 Highs And Now Grow
On July 4th, a pseudonymous cryptocurrency trader noted that Bitcoin’s recent price action is more harrowing than it may initially seem.
Commenting on the chart he shared below, the analyst wrote: “It’s going to be so hard for a lot of you.”
As is depicted, Bitcoin’s rally in February and the rally seen recently have both formed rounded highs. More importantly, they formed these highs around the exact same level: $10,500.
Should history repeat itself, the leading cryptocurrency could soon be subject to a strong breakdown.
The analyst didn’t convey an exact price target, but he did include Fibonacci Retracements of the move from $3,700 to $10,500. The nearest retracement level is the 38.2% retracement at $7,919 and the one closest to that is the 50% retracement at $7,146.
This isn’t the only similarity analysts have observed between the highs then and the highs now.
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