Bitcoin’s Déjà Vu: 2023 Patterns Emerge, What’s Next?

• Retail interest in Bitcoin has dropped sharply, mirroring late 2023 patterns, reflecting market apathy.
• Bitcoin faces resistance at $61,843.50 whereby a breakout might lead to a short-term rally, but a pullback is expected.
• Support at $59,916.40 might be tested if Bitcoin corrects after a brief rally, echoing past price movements.

The Bitcoin market is showing striking parallels to patterns observed in late summer and autumn of 2023, according to analyst Miles Deutscher. Retail interest has significantly declined, with YouTube views plummeting in the past week. This drop in engagement reflects a broader lack of enthusiasm among market participants, exacerbated by a lack of compelling narratives to drive new investments.

Comparing Bitcoin’s price trends from 2023 and 2024 reveals a recurring pattern. In 2023, Bitcoin found crucial support around $24,000 in August and $20,000 in June. These levels were key to the price’s subsequent rally. Resistance was firmly established at $31,000 and $32,000, with the latter only broken in October 2023, triggering a significant upward movement.

Source: X

Comparatively, Bitcoin’s price action in 2024 mirrors this trend. The support levels in 2024 were found around $55,000 in July and August, echoing the previous year’s support dynamics. 

A notable support level at $45,000 was also observed before a substantial upward shift began. Resistance levels in 2024 have been tested around $65,000 and $70,000, with the price struggling to break above these thresholds, similar to the resistance faced in 2023.

Further analysis by VeLLa Crypto on Bitcoin’s 1-hour timeframe highlights some crucial short-term developments. The price is $60,851.28, approaching a key resistance level at $61,843.50. This resistance has previously stopped upward movement, leading to consolidation phases.

VeLLa Crypto suggests that observing the BTC LTF (Low Time Frame), there is potential for a move above the wick. If the price surpasses this resistance, a temporary increase might follow. A range between $62,000 and $63,000 could be a strategic area to consider placing shorts.

The analysis indicates that if Bitcoin breaks above the $61,843.50 resistance, the price might experience a brief rally before a likely correction. This correction could push the price back to test the $59,916.40 support level, which could act as a crucial foundation for the next upward movement, consistent with past patterns.

As at press time, Bitcoin’s live price stands at $61,225.30, with a 24-hour trading volume of approximately $28.36 billion. The cryptocurrency has seen a 4.44% increase over the last 24 hours.