Bitcoin (BTC) continues to face challenges as it struggles to regain footing after its historic high of $124,500 earlier this year. Current indicators point to a possible extended bear market, with patterns eerily similar to the 2021 cycle that saw BTC enter a prolonged downturn.
Repeating the Patterns of the Past
According to the cryptocurrency analysis platform TradingShot, Bitcoin’s price movements show strong parallels to previous cycles. The 2025 trajectory has been marked by lower highs and lower lows, mirroring the events that defined the 2021 decline.
Notably, in 2021, Bitcoin found temporary support after a short-lived bullish reversal. This recovery was signaled by a death cross on the chart, followed by a bullish RSI divergence. Similarly, this year’s price action reflects higher highs in August, aligning with an ongoing fractal suggesting bearish momentum.
What’s Next for the Market?
Currently trading just below $110,000 after a late-August dip, Bitcoin remains under scrutiny as it teeters above critical support levels. The cryptocurrency recently fell below its 50-day moving average ($116,462), raising concerns among investors about further declines. However, the 200-day moving average, sitting at $95,666, indicates that the long-term uptrend still holds steady—for now.
While short-term technical indicators like RSI (37.76) point to a potential oversold condition, many analysts warn the selling momentum may not be over just yet. A pronounced rebound could occur if buying activity intensifies, but this hinges on maintaining current support levels.
Consider Cryptocurrency Tools for Better Decisions
If you’re navigating the volatile world of Bitcoin trading, tools like the eToro multi-asset investment platform are worth exploring. With features like zero commission stock trading, real-time performance copying, and access to over 3,000 assets—including cryptocurrencies—users can make data-driven investment decisions. Please note: cryptocurrency investments carry risks, and it’s essential to understand the volatile nature of these markets before engaging.
Final Thoughts
The next few weeks could be pivotal for Bitcoin as it tests crucial support levels. Whether the 2021 bear-cycle patterns fully repeat remains uncertain, but cautious optimism tempered with informed trading strategies could make a difference for seasoned and novice investors alike.
