Bitcoin Price Charts Echo Pattern Seen Before 2015 Bull Market

View Bitcoin's drop from a record high of $20,000 clocked in December 2017 has ended up creating a falling channel similar to the one created in the 18 months leading up to the long-term bullish reversal seen in October 2015.

Bitcoin's 14-month bear market has ended up creating a similar price pattern to one that paved the way for a bull run in 2015.

Despite the recovery rally, the price is still down 79.85 percent from the record high of $20,000 reached in December 2017.

Throughout the sell-off, the cryptocurrency has charted a series of lower highs and lower lows, known as descending channel in technical parlance.

Bitcoin produced a similar pattern during the previous bear market witnessed in 2014-2015.

The upside break of that falling channel, confirmed in October 2015, was followed by a two-year bull market.

As can be seen above, the price action seen over the last 14 months looks very similar to that seen in 2014 and early 2015.

An early move above the upper edge of the channel, currently at $4,070, could be seen as several indicators are flashing early signs of bullish reversal.

Both the higher lows-higher highs pattern and the ascending 5- and 10-day MAs seen on the daily chart indicate the path of least resistance is to the higher side.

Bitcoin image via Shutterstock; charts by Trading View.