Bitcoin (BTC) Rally Stalled, Market Behavior Sparks 2019 Deja Vu

It seems even Bitcoin isn't immune to gravity. The latest chart making rounds on social media is not for the faint of heart

Bitcoin’s recent rally has stalled, sparking comparisons to the 2019 crypto bear market. As BTC price struggles to breach the $70,000 resistance, some crypto strategists are highlighting the absence of fiscal stimuli and warning of potential further declines.

Bitcoin Price Correction Deja Vu?

Despite rallying to new all-time highs above $74,000 in August, Bitcoin has faced difficulties sustaining the momentum. The world’s largest cryptocurrency has been trading below the key resistance level for several weeks now.

Highlighting this development in a recent video analysis, crypto strategist Benjamin Cowen pointed out the similarities between the current scenario and the 2019 crypto market correction. At the time, Bitcoin slid from highs around $14,000 to lows below $4,000.

Cowen noted the absence of fiscal stimuli such as rate cuts and quantitative easing, which supported past Bitcoin rallies. “If Bitcoin can’t break through and starts to fade, we could see more of those 2019 similarities,” the strategist told his 818,000 YouTube subscribers.

“Maybe another rate cut or more quantitative easing could propel Bitcoin to new highs,” he added, underscoring the impact of broader economic policies on crypto valuations.

Contrasting with Cowen’s cautious stance, another prominent crypto analyst, TechDev, offered an optimistic forecast for BTC on X, drawing comparisons between Bitcoin’s price movements and the historic rally of Japan’s Nikkei index which began in 1975.

“This next phase could be more challenging to predict than you might expect,” TechDev told his 473,000 followers.

Highlighting the rapid gains that could follow, he added, “When the broader market catches on, expect swift gains. Historically, just 30 days have driven 99% of Bitcoin’s growth over the past decade.”

Institutional Investors Bet on Recovery Amid Declines

As Bitcoin price struggled to regain its bullish momentum, institutional investors appeared to be using the opportunity to accumulate. According to data from ETF Trends, U.S. spot Exchange Traded Funds (ETFs) saw $297.60 million in inflows on Oct. 21.

These inflows were led by BlackRock’s IBIT fund, which contributed $332.30 million. However, despite the inflows, Bitcoin’s price failed to hold the $70,000 level, facing a sharp rejection that sent it tumbling to the lower $67,000 range.

Meanwhile, large-scale individual investors, or “whales,” have also made notable moves. According to crypto tracking platform Whale Alert, one large transaction saw 1,446 BTC being moved to Binance. The total value of the transaction amounted to roughly $96 million.

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