Similar Patterns Emerging as Bitcoin Faces Potential 2024 Capitulation Event

Technical analysis by prominent crypto trader and analyst Alan Santana on TradingView shows that Bitcoin has been sideways for 224 days.

Prominent crypto trader and analyst Alan Santana has shared some interesting technical analysis on TradingView, highlighting that Bitcoin has now been trading sideways for 224 days.

Santana contrasts the present market activity with the 2013/14 bullish wave, which he had earlier identified as a “recovery wave.” However, a key difference this time around is that Bitcoin had already reached a new all-time high (ATH) before shifting sideways. This pattern, to some extent, mirrors the market behavior prior to the March 2020 crash.

Similarities Emerge as Bitcoin May Be Gearing up for a Capitulation Event in 2024

Peaking in July, Bitcoin entered a sideways phase with lower highs for 224 days precisely in 2019, forming a similar bounce as what has been observed recently. Throughout the last five weeks of that sideways pattern, Bitcoin saw a slight pump, followed by a neutral week, and then, surprisingly, the last crash occurred.

This sudden drop took many traders by surprise, and Santana suggests that something similar could be on the cards for 2024. He points towards the possibility of a capitulation event where BTC might drop to levels it traded in around October or September 2023.

Like In March 2020, Santana Thinks the Possible Fall May Last Three Weeks Of Strong Bearish Behavior

Before the sharp downturn, Bitcoin may spend the first two weeks holding up at its highs. During the 2020 crash, Bitcoin tested a low price range observed in late 2018/early 2019 and quickly recovered after the initial drop.

If the same pattern continues, Bitcoin could suddenly drop to levels seen as recently as late 2023, followed by a swift recovery. Highlighting that $43,000 is not the lowest, he also cautions that the longer the market waits to undergo this capitulation, the more severe it will be.

Elsewhere, BTC trades at $67,812.05 at the time of writing, seeing a daily trading volume of $30.64 billion and up by 1.57% in the last 24 hours. A mix of institutional and retail activity drives this price movement, and Bitcoin whales have been accumulating notably.

As reported by CNF, over the past two weeks, Bitcoin wallets containing 100 or more BTC have jumped by 297K. While retail wallets experienced only a 0.1% rise in the same period, large wallet holders increased by 1.9%.