According to widely followed cryptocurrency analyst TechDev, Bitcoin’s (BTC) current market structure looks similar to 2017, shortly before its massive 1,200% rally compared to its previous record high of $20,000.
The anonymous analyst shares with his 450,000 followers on social media platform
TechDev’s chart highlights that the collapse of two major cryptocurrency exchanges led to both bear markets bottoming out, followed by repeated rallies and consolidation phases.
“The more things change, the more they stay the same.”
A look at the traders’ charts seems to suggest that BTC is currently in a consolidation phase similar to 2017, when it was trading around $1,500 before reaching cycle highs of $20,000.
As of this writing, Bitcoin is worth $67,060.
Analysts also look at Bitcoin’s Relative Strength Index (RSI), which aims to measure the asset’s momentum. According to TechDev, Bitcoin has historically hit highs when RSI has reached the top of a long-term channel that has not yet occurred.
“You are in the green zone. “Don’t waste it.”
TechDev is also looking at the OTHERS chart, which tracks the market capitalization of the top 10 digital assets and all cryptocurrencies excluding stablecoins. In particular, he is looking at the stochastic RSI, Moving Average Convergence Divergence (MACD) and Log Bollinger Bands indicators on the charts.
MACD is traditionally used to spot reversals based on the convergence or divergence of moving averages, while Bollinger Bands are used to identify periods of imminent sharp price movement based on volatility contraction.
According to analysts, OTHERS, often used to gauge the strength of altcoins, has reached “maximum compression” territory, suggesting a big move to the upside is just around the corner. He also points out that this setup coincides with the return of “Roaring Kitty,” the leader of the movement that drove up the price of Gamestop (GME) in 2021.
“With this alternate setting reappearing, Roaring Kitty returns.
“There are no coincidences.”
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and you will be responsible for any losses you may suffer. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.
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