Bitcoin’s 2022 crash was one for the history books, with the price rising from $69,000 to $16,000 before hitting bottom. Since this was the last bear market before the current cycle, there have been many comparisons between the current trend and the previous one. So far, while Bitcoin’s price has tried to beat the bears, there have been similarities to the 2022 bear market cycle that could suggest a repeat of such a crash.

Similarities that say Bitcoin’s price could fall even further

A pseudonymous cryptographic analyst who goes by the pseudonym Sherlock in X he noticed many similarities that appeared on the Bitcoin price chart that may suggest a repetition of the 2022 cycle. The first of them was weekly trend line break this occurred after an initial wave of declines. Once this was broken, the floodgates were opened to bears.

Next on the list is the fact that Bitcoin has seen multiple red weekly candles. This was followed by a rebound that led to consolidation in the middle of this trend, as the chart shows recent bounce towards $74,000. This green candle pushed the price towards the next resistance. However, the bulls were ultimately rejected from this level, leading to an impulsive break below the low.

The last event that took place on the chart is the formation of the upper wick candle. Once this process was completed and the price was rejected from this level, another collapse caused the Bitcoin price to plummet from $30,000 to $17,500 before another relief, a 40% price drop.

It is currently coming to an end upper wick the candle is the only thing left for the Bitcoin price. Sherlock confirms that the digital asset does in fact print a candle with a top wick. If this ends, it could lead to the same collapse that occurred in 2022.

This would repeat the 40% collapse from current levels put Bitcoin price back in the $35,000 territory. Reaching the end where the final bear market bottom is established would mean a drop as low as $30,000 before sellers droughty up.

Interestingly, however, this was the final leg of the decline that led to the end of the bear market in 2022. There was a rapid recovery over the next few months, and in the year following the low, the price of Bitcoin reached up-to-date all-time highs.

Featured image from Dall.E, chart from TradingView.com