Bitcoin (BTC) experienced a crash following macroeconomic uncertainties, which one crypto trader sees as a positive signal based on historical patterns. This could be the final piece of a “super bull rally” puzzle considering Bitcoin’s theoretical seven-year super cycle.
In this sense, Trader Alan shared a long-term technical BTC price analysis on X published on August 6. Alan celebrated the recent crash that “finally printed a wick below the support line,” mirroring the previous supercycle.
As analyzed, the Bitcoin price made a similar move in 2016, triggering a “super bull rally” that ended in 2018. According to the analyst, this new “wick down” could take BTC to a new all-time high in the following years.
However, it is important to understand that the proposed pattern has only occurred once; it must therefore be validated in this cycle. Furthermore, past events do not guarantee future actions. Bitcoin and the cryptocurrency market have changed a lot in the last decade, which has had a huge impact on historical analysis.
The “super bull rally” theory for Bitcoin price
Above all, Trader Alan traced a super six-year cycle from 2013 to 2018, consisting of two pulses following a smaller one. The first pulse is not considered in this analysis because it occurs in early 2013 and 2019.
Therefore, the analyst compares the impulse in mid-2013 with a local peak in 2014, followed by a two-year consolidation phase. Something similar happened in mid-2021 and consolidated between 2022 and 2023.
Following this accumulation level, Bitcoin price experienced a crash in 2016, forming a one-month candlestick wick below a key support. The bear trap then acted as a trigger for a “super bull rally” to $20,000 and a massive altseason that benefited other cryptocurrencies.
Accordingly Trader Alanthis past price action could repeat itself this time if BTC confirms strong momentum. The chart illustrates a “super bull rally” to above $780,000, although investors must understand that Bitcoin has had far less liquidity and market cap in the past cycle – which may result in price not accurately replicating past length, as was already the case in the first impulse.
If history repeats itself, not only can BTC see a significant increase in the following months, but altcoins can also outperform the market leader. Still, investors need to be cautious and consider macroeconomic uncertainties and recession fears before allocating capital or leveraging positions.
Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.
