Bitcoin Mirrors 2016–2017 Rally Patterns, Eyes Parabolic Breakout Soon

Bitcoin’s current market structure is increasingly being compared to the 2016–2017 cycle, a phase that preceded one of the powerful rallies in its history. BTC is displaying nearly identical technical formations, with multiple bullish indicators remaining intact across higher timeframes and reinforcing optimism.

Analyst Javon Marks noted that these repeating patterns often emerge near major inflection points. The consistency of historical signals, alongside gradually improving sentiment, suggests BTC could be approaching a decisive moment. If buying pressure strengthens, the setup may support a parabolic advance similar to the asset’s previous landmark bull run.

At present, Bitcoin is trading at $88,458, posting a 1.16% gain over the past 24 hours. Daily trading volume stands at $48.80 billion, while market capitalization is valued at $1.77 trillion. Bitcoin’s market dominance remains strong at 59.30%, underscoring its continued leadership within the cryptocurrency sector.

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Bitcoin ETFs Trigger Short-Term Selling Pressure

Despite the bullish technical outlook, short-term pressure has emerged from exchange-traded fund activity. Bitcoin ETFs have reportedly recorded seven consecutive days of outflows. BlackRock transferred 6,174.39 BTC last week, reportedly to facilitate share redemptions, which coincided with a temporary pullback after BTC briefly cleared resistance on December 28.

Analyst Martini suggested BlackRock was not alone in contributing to selling pressure. According to the analyst, major entities, including Binance, Wintermute, Coinbase, and Fidelity, also offloaded substantial Bitcoin holdings. Collectively, these transactions represented billions in value, amplifying volatility and weakening short-term upward momentum.

Market Volatility, On-Chain Signals, and Outlook

During​‍​‌‍​‍‌ the weekend, the analyst Bull Theory noticed the volatility in prices as Bitcoin went up on Sunday, but then it dropped early on Monday. This movement was enough to result in liquidations of both the long and short positions. It is worth mentioning that Bitcoin did perform better than gold and the S&P 500 at first, but it has underperformed since the broader market has been declining since October.

For the coming days, the majority of analysts are still somewhat positive. Kevin Capital noted in X post that the data indicators are becoming more and more positive, which implies that Bitcoin’s relative bottom against equities and gold could be imminent. 

On the other hand, Ted Pillows drew attention to the on-chain data that reveals long-term holders have, for the first time since July 2024, ceased to sell, which might be a sign that the market is going to move higher again ​‍​‌‍​‍‌soon.

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