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\n\t\t\t\t\t\t\t\t\tAnalyst compares BTC\u2019s \u201cflat correction\u201d and deep drawdown to the S&P\u2019s 61% crash before its explosive bull run.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
A crypto analyst has suggested that Bitcoin (BTC) is tracing a historic pattern last seen in the S&P 500 before a massive 200% jump.<\/p>\n
This comparison points to a potential, though not yet certain, launch into a period of exponential growth for the world\u2019s leading cryptocurrency.<\/p>\n
In a detailed analysis, CrediBULL Crypto drew<\/a> parallels between Bitcoin\u2019s current price action and the S&P 500\u2019s behavior between 2000 and 2008. The expert noted that both markets experienced mid-cycle tops characterized by extended periods of consolidation without a dramatic peak, called \u201cflat corrections,\u201d before starting the next major upward move.<\/p>\n Following these phases, the S&P 500 suffered a 61% drop, while Bitcoin saw a 76% decline, before each started its final, explosive rally. CrediBULL now says that BTC is at a stage similar to where the S&P 500 was just before it went parabolic, which was followed by a 200% price increase.<\/p>\n \u201cOn the SPX, just before we went parabolic, we saw a 37% correction to the downside. Which was immediately followed by new ATH and a 200+% rally off the lows to where we are today,\u201d wrote the technician.<\/p>\n<\/blockquote>\n This optimistic outlook is coming at a time when the OG crypto is trying to find stability, currently trading around $92,000 after a difficult month that saw it fall over 14%. The comparison offers a counter-narrative to the bearish sentiment prevailing in the market, suggesting the recent downturn may be a typical, though sharp, correction within a larger bull cycle rather than its end.<\/p>\n CrediBULL insisted that a break of a short-term ascending trend line does not signify a breakdown in overall market structure, cautioning that traders who exited the S&P 500 on a similar technical break missed the huge rally that followed.<\/p>\n For Bitcoin, the trader highlighted $74,000 as the line that truly matters, telling one follower that the \u201ctrend line isn\u2019t relevant \u2013 74k is.\u201d Until then, they see<\/a> BTC \u201chugging\u201d its main trendline rather than starting the vertical part of the move.<\/p>\n The analyst community is divided on BTC\u2019s immediate future. While the historical pattern offers a hopeful framework, other experts have pointed to lingering headwinds. One of them, Axel Bitblaze, observed<\/a> that Bitcoin\u2019s recent decline is quite similar to a pattern from early 2025, which ended in a final sharp shakeout. According to him, rising Japanese bond yields and liquidity issues at smaller U.S. banks could serve as potential catalysts for another downturn.<\/p>\n The market is also witnessing a flight of retail investors, with data from November 19 showing<\/a> that small Bitcoin, Ethereum, and XRP wallets have been reducing their holdings, a behavior that, ironically, has often happened just before market recoveries.<\/p>\n Ultimately, the debate centers on whether Bitcoin is completing a final bearish shakeout or is on the cusp of a historic breakout. CrediBULL argues that the cryptocurrency, being a younger and faster-moving asset, could replicate the S&P\u2019s parabolic move in a much shorter timeframe.<\/p>\n\n
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