Why An Ongoing Bullish Bitcoin “Retest” Might Result In New Highs

Bitcoin price is still well below its former record, but the top cryptocurrency by market cap at the time of this writing is making another attempt to reclaim lost support near all-time highs set earlier in the year. The “retest” thus far is holding above a key level, and when compared to past peaks in the crypto market, this time almost certainly appears to be different. If the repeating pattern yields different results yet remains to be seen, but a unique outcome this time around would suggest a rally to new highs. The Four Most Expensive Words: “This Time It’s Different” According to Sir John Templeton, the most dangerous mindset in investing is assuming that “this time it’s different.” Markets are cyclical and price action often exhibits fractal-like patterns. Even Bitcoin itself appears to repeat in cycles every four years based on the built-in issuance mechanism called the halving. Related Reading | What Bear Market? Bulls Now “In Control” Over Every Bitcoin Timeframe Despite this predictability, how the cycle unfolds can present itself in unique ways. For example, the 2014-2015 bear market was a deep, rounding structure, leading to a dramatic rise and top in 2017. A failed retest led to additional lower highs and a descending triangle pattern that ultimately broke down. A retest of former support turned resistance is thus far holding | Source: BTCUSD on TradingVi...