Within the previous week, BTC began to reveal signs of weakness following a 40 percent upsurge in a month. The price of BTC was able to establish a $9.2k multi-month high about a week ago. However, since then, it has declined by 11 percent to $8.2k, which is its current level at press time.

Despite the price decline, it has secured a local bottom and bearish pressure is dwindling. In addition, a leading BTC analyst introduced an eerie fractal that says BTC will fall dozens of percent from here.

Within the previous few weeks, BTC was able to break out from major downtrends and rallied by dozens of percent since its price bottom at $6.4k established last month.

The rally was a decisive bullish price action and numerous analysts have said that the breakout is eerily similar to the notorious “China Pump” in October last year, when the president of China endorsed blockchain thereby sending BTC price to the upside by 40%.

Many indicators revealed similar directions for the move as well as how the price action was formed.

An analysis by ColdBloodShill revealed on Twitter recently says the similarities suggest that Bitcoin could dwindle by dozens of percent from the current level.

In 2019, BTC prices experienced a powerful crash from $8.7k to $6.4k, representing a 27 percent decline. Bitcoin has done something similar now, as it bounced off the 200 EMA in almost the same way it did in 2019.

Besides, charts are showing almost a similar shape, suggesting that if the fractal plays out completely, the price of Bitcoin will soon dwindle by more than 20 percent towards the $6ks.

Interestingly, despite the bearish fears, some still believe that Bitcoin buyers will take a stand, especially as the halving approaches. For example, Murad Mahmudov tweeted in recent times:

In my view, this isn't going to the Weekly 200 MA, because, as crazy as it sounds, the -53% drop from $13888 to $6410 wasn't a full out bitcoin bear market, but rather, unironically just mid-bullcycle correction.



cc @coinmetrics pic.twitter.com/63kDcqYwaL — Murad Mahmudov 🚀 (@MustStopMurad) January 11, 2020

Besides, the Lucid SAR indicator has revealed a bullish signal on a medium-term basis, being its initial buy signal since March 2019, which came before a 330 percent rally that led the price of Bitcoin to over $10k and cryptocurrency assets to the upside by huge percent.