Key Points
- Yesterday’s Bitcoin price drop below $50,000 may suggest upcoming bullish moves.
- BTC’s decline since 2024 halving has similarities to market movements ahead of the 2016 bull run.
Bitcoin’s price saw a spectacular rebound following an August 5 drop below the important level of $50,000.
At the moment of writing this article, BTC is trading above $55,000, up by over 4% in the past 24 hours.
Popular trader Peter Brandt believes that yesterday’s price drop for Bitcoin looks similar to the price movements that the digital asset experienced before the 2016 bull run.
In a post on X from August 5, Brandt addressed the market corrections since halving dates and he noted the similarities between them.
He wrote that Bitcoin’s decline since the 2024 April halving now looks similar to the price moves of the 2015-2017 halving bull market cycle.
According to his notes, Bitcoin’s price dropped by 27% post the 2016 halving. Back then, BTC saw a $650 halving close, and a subsequent low of $474.
Following this year’s halving, Bitcoin experienced a 26% price drop the other day. The April halving saw a close of $64,962, and a subsequent low of $49,050.
According to Brandt, Bitcoin’s price presents strong similarities with the 2015-2017 cycle and yesterday’s prices were reminiscent of the bullish moves that followed the 2016 halving. This means that we might expect a new bull run for the coin in the near future, according to his opinion.
Bitcoin Short-Term Holders’ SOPR Indicator
Yesterday’s Bitcoin price drop has been comparable to other important events in the crypto industry, according to other analysts.
For instance, CryptoQuant’s verified author, Axel Adler Jr. has compared the August 5 price drop of BTC to the price moves dating back to the China mining ban, or the collapse of the FTX exchange.
He shared a graph showing the BTC short-term holders’ SOPR indicator to sustain his argument.
Today, the same CryptoQuant author posted another message via his X account, saying he hopes everyone is alive after the Black Monday. He also shared the current support and resistance levels for BTC.
According to him, support is at $49,100 and resistance is $61,500 for the 200-day simple moving average.
