Bitcoin (BTC) is trying to break back above $84,000, but it’s been a bumpy ride. Could its performance this quarter mirror its 2017 surge? Let’s dive in.
Bitcoin’s Recent Price Action
Last week, Bitcoin briefly hit $88,000-$89,000, but it didn’t last. It quickly dropped back down to around $84,000, experiencing an 8.2% dip at one point before recovering slightly. The $84,000 level has been a tough resistance point for Bitcoin since its November breakout. Analysts have also noted several “CME Gaps”—price discrepancies between the weekend and weekday trading—that have been filled relatively quickly.
Will Bitcoin Rally in Q2?
Analyst Ted Pillows sees parallels between Bitcoin’s current situation and its 2017 performance. He points out that Bitcoin’s major rally during Trump’s first term didn’t really start until Q2 of 2017. After a period of consolidation, similar to what we’re seeing now, Bitcoin exploded from around $1,400 to $20,000 by December. If history repeats, we could see a massive Bitcoin rally later this year. Historically, Q2 has also been pretty good for Bitcoin.
However, analyst Rekt Capital suggests a more cautious approach. He believes Bitcoin might consolidate for a while longer. He points to Bitcoin’s failure to break out of a triangular market structure, similar to what happened in mid-2021. Back then, Bitcoin also experienced consolidation before its next big move. This suggests more sideways trading before a potential push towards $93,500.
The Bottom Line
Bitcoin is currently trading around $83,000. While some analysts are optimistic about a Q2 rally based on past performance, others believe more consolidation is likely before any significant price increase. Only time will tell if Bitcoin follows the 2017 script or takes a different path.
