Bitcoin’s (BTC) pullback from its all-time excessive of $124,500 is elevating considerations of prolonged losses, with the asset’s present chart formation exhibiting similarities to the 2021 cycle high that triggered a chronic bear market.
In accordance with insights from widespread on-line cryptocurrency analyst TradingShot, Bitcoin has struggled to regain momentum, with each rally try being bought off, and the worth slipping beneath the 50-day transferring common (MA).
The setup mirrors the identical sequence that unfolded 4 years in the past when BTC entered a serious downturn, the analyst famous in a TradingView submit on August 29.
In each 2021 and 2025, the evaluation exhibits decrease highs adopted by decrease lows. The market then discovered assist after a one-day loss of life cross, alongside a bullish RSI divergence that marked the short-term backside. Bitcoin rebounded, breaking above the MA50 and MA200 earlier than forming a bull flag after a golden cross.
That rally in the end ended with a double high, marking the height of the cycle. Right now, TradingShot highlighted an identical setup, with August’s greater excessive mirroring the 2021 sample.
On the identical time, the RSI trendlines additionally align, reinforcing the bearish fractal. If historical past repeats, Bitcoin might be on the verge of a bear cycle that erases a lot of this yr’s beneficial properties. With the worth now testing assist on the MA50, shedding this stage could set off a deeper correction, because it did in 2021.
Bitcoin worth evaluation
At press time, Bitcoin was hovering beneath the $110,000 mark, with considerations about potential prolonged losses within the coming days. The asset was buying and selling at $108,234, down over 2% within the final 24 hours, whereas on the weekly chart, the main digital forex has dropped greater than 3%.
In the meantime, Bitcoin’s technical indicators recommend potential draw back dangers. BTC is buying and selling beneath its 50-day SMA of $116,462, indicating short-term bearish stress, however stays effectively above the 200-day SMA of $95,666, suggesting that the broader uptrend stays intact.
Alternatively, the 14-day RSI at 37.76 signifies that Bitcoin is approaching oversold circumstances, suggesting that promoting momentum could also be easing and a possible rebound may observe if shopping for stress strengthens.
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