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BTC – weekly setup similar to May-July 2017 for BITSTAMP:BTCUSD by FutureBlockchain

Hello,

Few days ago I shared an idea about a potential bearish reversal triggered by the Diamond pattern on the daily chart .

Now the situation is that the pullback is a fact, but it’s mainly triggered by FUD events, which usually don’t have long-term effects on the price and are absorbed sooner or later.

Additionally, we are most certainly at a support

But this is not actually what I wanted to share in this idea. Some time ago I posted another idea looking at the BTC past performance that might help us prepare for what is to come and give us some food for thought.

Here is the idea:

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BTC Weekly chart:

Still in a long-term uptrend corridor, the price touched 21-day EMA which usually indicates the beginning of a trend reversal once the price breaks below it. What is more, we have a local price channel that is currently broken and the price has to recover to the levels above $50,000 to keep the bull run intact.

But if we go back to the May-July period in 2017, we will notice that the bull run was in its mid-phase when quite a deep correction occurred. You can clearly see that the price was struggling at a horizontal resistance on Weekly just like it is doing now, and then it broke down touching the 21-day EMA . A 34 percent pullback. What we have now is 30 percent pullback from the top.

BTC dominance is again below 45 percent – just like in May- July 2017, but what is more fascinating is the ETHBTC pair which is at the exact same level as back then and we all know what followed.

I cannot make general conclusions from this just sharing some thinks I noticed on the chart and I cannot just disregard the similarities I see.

Cheers,

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