Charles Shrem, the cryptocurrency analyst popularly known as Blockchain Backer, has observed that the crypto market is at a similar level to where it was in 2020 before XRP surged about 180%. According to Shrem, both the Bitcoin and the altcoin prices started to rally towards new highs shortly after that setup.
In 2020, is was right about where we are right now in this setup where XRP shot up 180%.
Bitcoin up ✅
Altcoin market up ✅This is where it happened, let’s see how this week unfolds from here. pic.twitter.com/B1fFM9qJEu
— Blockchain Backer (@BCBacker) December 9, 2023
Shrem explained his observation by using a current Bitcoin daily chart and placing it side by side with the daily chart from 2020. He also plotted the XRP/USD price on the charts and the Total3 metric, representing the total market cap of all cryptocurrencies excluding Bitcoin and Ethereum.
Shrem’s chart presentations show a correlation between both sets of metrics on both charts despite being three years apart. However, there was a similarity in the timing, as both chart formations happened toward the year’s end, and the chart from 2020 preceded a significant bull run.
A closer look at Bitcoin’s behavior in 2020 shows that the flagship crypto rallied over 320% after the period observed by Shrem. The price surged from below $16,000 to nearly $65,000 in less than six months, according to data from TradingView. During the same period, XRP made an initial rally of about 180% and pulled back before making a second and more significant rally that saw the top altcoin gain over 1000% in less than four months.
Although Shrem’s comparisons are similar and highly correlated, it is important to note that there is a variance in their relationship with the Bitcoin cycle. Shrem’s analytical chart from 2020 reveals the cryptocurrencies’ behavior after the previous Bitcoin halving, while the chart from 2023 reflects what is happening before the next Bitcoin halving event.
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