A closely followed crypto strategist says Bitcoin’s (BTC) market structure over the last three years is reminiscent of Nasdaq’s price action during the early 2000s.
In a new strategy session, pseudonymous analyst Altcoin Psycho looks at how the Nasdaq performed from 2003 to 2008 to get a glimpse of how BTC may react in the short term.
“You’ve got your downtrend [2003]. You’ve got a clear low that was defined with a bounce, and then you’ve got your double bottom [2004] with a higher low. After you got this double bottom with a higher low, you had a really crazy parabolic run on Nasdaq [2005].
2005 Nasdaq reminds me a lot of where the crypto markets are today. Once we had this big runup, we kind of created this range. So you have the top of the range and the bottom of the range [2006]. You swept the high of that range [2009], and then you also came back and swept the low of that range.”
Looking at Bitcoin, Altcoin Psycho says BTC is currently following the Nasdaq chart on a step-by-step basis.
“Same thing here. You’ve got your downtrend… You had your low formed [2018]. You had kind of again like a double bottom higher low form [2020]… Markets really took off after we had that double bottom. It’s the same thing: you had your range high form [April 2021], your range low form [June 2021]. We just barely swept the range high [November 2021] just like in Nasdaq of 2005…
If we do end up following that, then technically Bitcoin would sweep this low as well, which would put us at around $29,000.”
Should Bitcoin actually follow the Nasdaq script, BTC is looking at a downside potential of nearly 25% from its current value of $38,427.
Although the fractal suggests short-term bearish price action for Bitcoin, Altcoin Psycho reminds his YouTube subscribers that the Nasdaq ignited a massive bull run in 2010 that continues to rage on today.
https://www.youtube.com/watch?v=_MCZVjR6jo0
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Source: https://dailyhodl.com/2022/03/08/analyst-compares-bitcoins-price-action-to-nasdaq-in-early-2000s-says-btc-correction-below-30000-in-sight/