Analyst: Current Bitcoin trend similar to when BTC price crashed from $6k to $3k

According to a cryptocurrency market analyst, the current Bitcoin price trend looks similar to when BTC crashed by more than 50 percent in November 2018.

The analyst compared the drop in the miner revenue, potential stagnation of hash rate, and the fractal that formed before BTC engaged in a steep drop to lower support levels.

Analysts had varying theories to explain the abrupt $3,000-drop of Bitcoin in November 2018.

If the past two months of bearish price action have been a build-up to potential capitulation amongst small miners, there is a possibility that BTC drops much lower than anticipated support levels.

Although the Bitcoin price demonstrated signs of a short term bullish reversal as it swiftly moved from $6,600 to $7,700 within a span of several days, it was quickly rejected at important resistance levels.

In the past 48 hours, the Bitcoin price has fallen from $7,850 to $7,330, by well over six percent against the U.S. dollar.

The Bitcoin hash rate has been dropping since October 2019, but due to variance and other factors, it is difficult to determine whether the hash rate is actually on an extended decline.

Is deeper pullback likely for BTC? According to prominent cryptocurrency trader Josh Rager, the latest downside movement of bitcoin is seemingly becoming a rejection, with higher time frames indicating bearish structure.

"BTC looks like a reversal with this follow through break down High time frames don't look great. Traders keep trading and hodlers keeping hodling - if navigating the Bitcoin market were easy everyone would be here. Enjoy the ride and learn along the way."

The past six monthly Bitcoin candles on major platforms like BitMEX closed as lower highs, which would normally indicate a bearish macro trend for the asset.