Cryptocurrency analyst Eric Krown recently discussed the current state of the cryptocurrency market, pondering whether the dynamics at play indicate a significant departure from historical patterns. Krown opened up about the importance of relying on hard data and analysis when considering that “this time is different.”
Krown begins by examining historical data related to Bitcoin’s previous halving events, represented by green bars. He notes a consistent trend where Bitcoin experiences a rally before each halving event, typically reaching about 70% off the prior all-time high. However, he points out a notable deviation in the current rally, which has surpassed previous highs by about 30%, with Bitcoin currently trading around $51,100.
Next, Krown analyzes Bitcoin’s behavior concerning Fibonacci levels, particularly after reaching highs. Historically, Bitcoin tends to rally to the 50% to 61.8% Fibonacci levels before retracing to the 23.6%, where it finds support before further upward movement. However, in the current cycle, Bitcoin has surged beyond 61.8%, trading above $51,000, a phenomenon untouched in previous cycles.
Krown offered information on Bitcoin’s recent price movements, considering its consolidation within a range defined by Fibonacci levels. He suggests that Bitcoin’s sideways movement and volatility contraction may indicate an impending breakout to the upside. Furthermore, he discusses the potential implications for altcoins, noting a rotational market where other cryptocurrencies like Ethereum are gaining traction.
The analyst advises monitoring Bitcoin’s price action closely, particularly its ability to hold above the $51,000 level. A daily close below this threshold could signal a short-term correction, with support likely around $48,000. However, sustained sideways movement by Bitcoin could imply further upside potential.
