Historical Trends Since 2017 Indicate Bitcoin Price Drop to $35,000

Bitcoin Faces Potential Correction

Bitcoin is experiencing notable price fluctuations, hinting at a possible deeper correction. Crypto analyst Chiefy recently shared insights on social media platform X, suggesting that Bitcoin might be echoing the macro structure observed after the peaks of 2017 and 2021. If this trend holds, there’s a chance Bitcoin could dip to $35,000 in the coming days.

Bitcoin Mirrors Past Cycle Patterns

Chiefy’s analysis highlights three significant peaks: a high of $21,000 in 2017, a peak of $69,000 in 2021, and a recent high exceeding $126,000. The pattern reveals that in both 2017 and 2021, Bitcoin suffered substantial declines of over 70% before stabilizing at long-term lows.

After surpassing $21,000 in 2017, Bitcoin’s value plummeted by 84% during the subsequent bear market. Following its 2021 peak of $69,000, the current decline has reached roughly 77%. Chiefy noted that the fractal correction is strikingly similar, suggesting the market may be approaching a capitulation stage like those experienced earlier.

The ongoing correction from $126,000 is starting to echo the structure of past declines. If Bitcoin follows a comparable percentage drop, analysts could see it falling between $30,000 and $35,000. Furthermore, there are concerns that this could happen within the next ten days if historical patterns persist.

ETF Demand and Whale Movements Contribute to Bearish Sentiment

Recent on-chain data indicate a conservative outlook among crypto investors. Glassnode has pointed out that the 30-day simple moving average for net flows in Bitcoin and Ethereum spot ETFs has been negative for most of the last three months, signaling insufficient demand to counterbalance ongoing selling pressure.

On another note, CryptoQuant’s Whale Inflow Signal revealed that whale inflows to Binance surged as Bitcoin’s price fell from $95,000 to $60,000. The average monthly inflow jumped from about 1,000 BTC in late January to nearly 3,000 BTC in February, peaking at around 12,000 BTC on February 6.

Since February 1, daily inflows from significant bitcoin holders have surpassed 5,000 BTC on seven different days. This trend indicates a rise in transfers from major Bitcoin investors to Binance, which likely intensified the price drop due to increased selling pressure.