Despite Bitcoin sliding from its recent all-time high and social media sentiment sinking into extreme fear, trader Alessio Rastani sees a potential upside rather than a prolonged bear market.

Historical Patterns Suggest Potential Rally

In an interview with Cointelegraph, Rastani highlighted a recurring setup that historically precedes strong rallies about 75% of the time. This pattern often appears after death cross events, which many traders mistakenly interpret as bearish signals.

Key Indicators Point to Upside

Rastani cites several factors supporting a bullish continuation:

• Extreme fear in market sentiment
• Oversold technical indicators
• Strong correlation with the stock market

He believes these signals suggest the recent drop may not mark the start of a full bearish cycle.

No “Blow-Off Top” Formed

Unlike previous market peaks, Rastani notes that Bitcoin may not have formed a blow-off top, a technical feature often signaling the end of a cycle. This observation implies that the recent all-time high might not be the cycle’s terminal top.

A Balanced Perspective

While he warns that relying solely on timing cycles can be misleading, Rastani emphasizes that current price action and market dynamics tell a different story than the extreme bearish sentiment circulating online.