Bitcoin (BTC) is trading at $112,851, down 5.98% on the weekly chart. The move marks its lowest point in three weeks and extends a sharp reversal from the all-time high of $124,457 set on August 14, leaving the cryptocurrency down 9.3% from last week’s peak.
BTC has broken below its 1D 50-day moving average (MA) for the first time in two months, triggering short-term jitters, though it remains comfortably above the 200-day SMA. The daily Relative Strength Index (RSI) has fallen to 40, a level that marked major lows in both August and June.
Despite the pullback, according to cryptocurrency analyst TradingShot, Bitcoin’s current structure resembles a fractal (a recurring chart pattern that mirrors previous phases in price and momentum) from its 2020 cycle. In fact, both the RSI and price action now look similar to late 2020, when BTC began its steep climb.
Back then, BTC’s rebound set the stage for its run toward $60,000. Analysts suggest today’s setup could play out in the same way, potentially supporting a move toward $150,000–$170,000 before the current cycle ends.
Short-term correction risk
Other analysts remain cautious. Master Ananda highlighted Bitcoin’s failure to break through the $122,524 resistance level, calling it a double-top bearish signal. He identified the 1.618 Fibonacci extension at $102,077 as a key support zone, with potential downside toward $100,000 if selling pressure accelerates.
Temporary support has appeared at $112,000, but Ananda doubts it will hold. He expects the correction to run its course within days before Bitcoin stabilizes and resumes its longer-term uptrend.
BlackRock ETF flows spark alarm
Adding to the bearish sentiment, on-chain trackers this week flagged large Bitcoin transfers linked to BlackRock’s iShares Bitcoin Trust (IBIT). The ETF’s wallet balance appeared to fall by 50,000 BTC ($548 million) over the past week, sparking fears of a mass sell-off.
Data shows 8,668 IBIT-linked transactions, with coins shifting between addresses in chunks ranging from $22 million to $35 million. In reality, the flows were routine custodian shuffles between cold storage, hot wallets, and counterparties for liquidity. All investor assets remain fully backed, and no Bitcoin was sold to exchanges.
Featured image via Shutterstock.
Source: https://finbold.com/bitcoin-repeats-2020-sequence-rally-incoming/
