Bitcoin was on a massive tear and the parabolic run was unstoppable as the crypto reached $13,000. It has declined since but is up on the weekly timeframe. While many long-term investors are euphoric over this juggernaut ascent, some experienced traders are starting to feel anxious. The trend reversal is so strong that a significant retracement is currently lurking. One popular day trader has a resounding argument that supports this bias.
Analyst Opinion on Bitcoin Pullback
A respected figure in the CryptoTwitter community named Trader X0 who boasts 13,000 Twitter followers looked at bitcoin’s daily chart and saw a striking similarity between the 2017 disbelief rally and the recent parabolic rampage. On June 23, the analyst shared his thoughts on Twitter to show the possible area where the leading cryptocurrency might correct.
According to the trader, bitcoin went above the range high of $12,000 as the possible last leg up. This is in line with the 2017 disbelief fractal that pushed bitcoin from $5,000 to nearly $8,000 in a couple of weeks (labeled as 3 and 4 on the left-hand side of the screen).
The analyst also said that this would “wipe out early shorts.”
Market structures from the 2017 bull run and the most recent reversal look eerily similar: