Bitcoin Sudden Drop: Could This Be a Setup for a Massive Rally? Analyst Weighs In

Bitcoin, the world’s leading cryptocurrency, has experienced a noticeable decline in its price over the past two days, dropping from a high of $63,000 to as low as $57,000. This decrease can be considered as unexpected as it surprised many.

So far, crypto analysts are reassessing their outlook on Bitcoin. Despite no hope of a bullish catalyst in sight, some analysts believe this ongoing plunge could be a temporary setback in a larger bullish trend.

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Bitcoin Decline Suggests A Setup For Massive Rally?

Renowned crypto analyst Javon Marks recently shared his updated perspective on Bitcoin, suggesting that the recent dip may be a short-lived pullback rather than the start of a prolonged downtrend.

According to Marks, Bitcoin exhibits several bullish patterns that point towards a recovery back to the $65,000 level. He emphasizes that while the current drop is significant, the broader market structure remains intact.

Bitcoin chart. | Source: Javon Marks on XMarks highlighted that one of the bullish patterns seen in Bitcoin’s near-term chart indicates a potential reversal that could lead to a recovery above $65,000.

He further elaborated that on a larger scale, another bullish formation suggests a possible 21% increase from the current levels, potentially pushing Bitcoin’s price to over $73,000. This optimistic outlook is based on historical patterns and technical indicators that suggest Bitcoin may be gearing up for a strong rebound.

One of multiple #Bitcoin (BTC)’s bullish patterns in the near term is present here, suggesting the recent pullback to be temporary and a recovery back to the $65,000s!

On a larger scale, another bull pattern continues to suggest an over 21% climb from here to $73,000+… pic.twitter.com/4k1rJV5EYU

— JAVON⚡️MARKS (@JavonTM1) August 28, 2024

Was The Dip Something Out Of Ordinary?

While some investors may be anxious about the recent downturn, other analysts encourage calm. Moustache, a well-known figure in the crypto analysis community, compared the current market situation to Bitcoin’s performance during the 2020 COVID-19 crash.

He pointed out that the current decline resembles the market behavior observed during that period, eventually leading to a significant recovery.

Bitcoin chart comparison. | Source: Moustache on XMoustache shared charts comparing the 2020 COVID crash with the ongoing market performance in 2024, particularly focusing on the similarities between Bitcoin’s price action during these two periods.

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He noted that, despite the short-term volatility, Bitcoin’s price movements in 2024 appear to be following a similar pattern to the 2020 recovery. According to Moustache, this is a positive sign that suggests Bitcoin could soon rebound, mirroring the post-crash surge seen in 2020.

BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.comFeatured image created with DALL-E, Chart from TradingView