The cryptocurrency market has demonstrated manifold behavior during the last one month. And while the price of major cryptocurrencies is still consolidating, analysts and traders alike argue about the future of the crypto market. Some believe the price of Bitcoin, Ethereum and the rest of coins is going to appreciate in the long-run due to the revolutionary improvements in the global financial system. The others point out to tightening regulation and lack of growth factors. Whatever the answer, traders might want to take a look at the general patters that tend to repeat themselves.
Patterns are important. In trading, especially in its technical analysis section, they truly play the key role. By identifying patterns correctly and at the right moment, traders do get a chance to anticipate the market’s next move and use this information to their own advantage. The cryptocurrency market, shook by the most recent downfall, has not fully recovered, but it is consolidating.
Though not absolutely identical, this situation has already been observed in the past. On June 14th, the crypto market cap has reached its then all-time high. On the same day, however, the price of all major coins began to depreciate. After reaching the local minimum, the price action then reversed its coarse and gave birth to another round of rapid growth. The positive trend lasted for one and half months. In a matter of less than two weeks the cryptocurrency market lost 44% of its value.
What we see now is very reminiscent of the price movement that was already observed in the past. Not an absolute guarantee of the future market performance, this similarity can give a hint of the possible market performance in the coming days. Should the most recent pattern repeat the behavior of its older counterpart, another round of cryptocurrency growth can be expected soon enough.
