Bitcoin price action mirrors 2019 ‘Xi pump,’ are new BTC lows incoming?

Bitcoin’s weekly chart was on observe to shut under $90,000 for the primary time since November 2024, however a late surge pushed costs increased following US President Donald Trump’s announcement of a crypto strategic reserve.

Bitcoin Price, Markets, Donald Trump, Price Analysis, Market Analysis — *Bitcoin weekly chart. Supply: Cointelegraph/TradingView*

Regardless of February’s month-to-month candle closing at $84,299, BTC’s (BTC) weekly shut fashioned a doji candle, closing at $94,222. With costs retesting the $95,000 overhead resistance, one analyst remained cautious a few repeat of 2019’s “Xi pump.”

Will Trump-pump comply with the Xi-pump path?

In 2019, throughout a protracted bearish buying and selling interval that stretched from June to October, Bitcoin’s market sentiment was low. Nevertheless, on Oct. 25, 2019, China’s President XI Jinping’s announcement supporting blockchain expertise triggered a big worth rise.

Nevertheless, in subsequent days, China imposed a sequence of crackdowns on crypto belongings and actions like mining, resulting in new lows inside 30 days.

Chilly Blooded Shiller, an nameless crypto analyst, drew similarities between the ‘Xi-pump’ and the present Trump pump, suggesting that sentiment rallies can usually fizzle out because of lack of energy, and the market shortly adjusts itself to the prior development.

As illustrated within the chart, the similarities between each intervals adopted comparable retests of prior assist ranges. Within the first case under $10,000 in 2019 and under $95,000 in 2025, and the asset fashioned new lows 30 days later. The analyst added that in 2019, merchants shortly acknowledged the pump as a “brief squeeze and managed to get some superb entries.”

Likewise, Magus, a crypto dealer, mentioned that bulls wanted to show themselves this week and perform re-acceptance of the worth space excessive (VAH) at $103,000 and worth space low (VAL) at $91,000.

The VAH and VAL outline a variety the place nearly all of buying and selling quantity occurred throughout a specific time interval on a chart, on this case, since November 2024. Nevertheless, Magus additionally remained cautious of the Xi pump, stating:

“It is a textbook swing setup for me usually however in the event you’ve been round lengthy sufficient you bear in mind the Xi pump My intestine tells me this transfer was exaggerated due to sentiment.”

Bitcoin stays in distribution, not accumulation

Information from Glassnode recommended that regardless of BTC’s rally, the short-term holders’ (STH) price foundation dropped under 1 after initially shifting above $92,700. Bitcoin’s present worth is under $92,700, which suggests that STHs remained in a “fragile place” with profitability present at breakeven.

Moreover, the info analytics platform additionally said that Bitcoin’s accumulation development rating remained below 0.5 for 58 consecutive days, underling an extended interval of web distribution.

A distribution interval is outlined as a part of profit-taking by traders, which is usually in keeping with market corrections. Glassnode added:

“Accumulation and distribution phases have alternated inside a 57-65 day window on common. With the newest learn at 0.9, the Development Rating signifies massive entities are nonetheless in a web distribution regime, with no confirmed transition to accumulation but.”

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.