The current price pattern in the bitcoin market is eerily similar to the one observed in the run-up to a major rally that occurred on April 12.
To start with, bitcoin charted a long-tailed candle on Aug. 14, similar to the one seen on Apr. 1, signaling the sell-off from the July 24 high of $8,507 has likely run its course.
Further, the leading cryptocurrency has spent the last seven days trading in a sideways manner around $6,400. Back in April, the cryptocurrency traded around $6,800 in the first 11 days before rising sharply above $8,000 on April 12.
More importantly, during the bitcoin price consolidation of early April, the BTC/USD shorts on Bitfinex jumped more than 44 percent to print a record high of 40,719 and fell sharply on April 12, meaning the big spike in BTC was likely fueled by the unwinding of short positions.
Interestingly, the short positions on Bitfinex currently stand at $38,640 – the highest level April 12 – and are just short of the record high of 40,719, as seen in the chart below.
Read more: https://www.coindesk.com/rally-ahead-bitcoin-is-repeating-price-action-seen-in-april/
Comparing right now to April could be reasonable - but then, April's bull rally really didn't turn out to be anything major.
Prices essentially collapsed again after the $10k resistance proved to be stronger than most people had expected, back in April. So even if this comparison is legitimate, i really doubt that a bull market will come out of such deeply bearish sentimented markets.
Also, we don't know if the support at $6k is going to hold or not. Even though the bottom is pretty much close to the level we're at right now, prices could take a further dip before recovery comes. It's way too early to say that we'll see prices going up, and sentiments shifting to more bullish.