Last time this happened, Bitcoin appreciated by 300%

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With 2022 being a pretty tough year for the cryptocurrency market, analysts are always looking for some light at the end of the tunnel. Some wait for good news, while others keep an eye out for the many signals that chart analysis can provide.

One such case was noted by Alan Farley, trader and columnist for CNBC, who noted that Bitcoin hit a metric that was previously a trigger for an appreciation above 300%.

This time the “hope” is at the oversold level. Farley noted that Bitcoin is at one of its lowest oversold levels, and that the last time this value was reached, Bitcoin had an all-time high of 300% in the following months.

#Bitcoin rallied 300% in 5 months the last time it hit this oversold level.

— Alan Farley (@msttrader) November 24, 2022

At that time Bitcoin was just coming out of

, one of the most brutal years for the entire market, responsible for massacring all the gains that were made in the year of the cryptocurrency boom, 2017.

As you can imagine, many believe that these signs in the history of a chart can mean a future similar to what happened. So is Bitcoin ready for a new rally being in a position similar to 2018?

Well, the answer, as always, it is very complex.

A different crisis in 2018

While some may see hope in repeat history in the Bitcoin market, the possibility exists that the current crisis will be different from past bear markets due to the sheer scope of losses, media coverage and regulatory scrutiny.

The cryptocurrency market has evolved considerably since 2017. As popularity has increased, so has regulation, and we’ve improved several other pillars. As a result, the market has evolved positively.

The time of the empty hype of ICOs that made the market of

became so lucrative, there is less foam in the market (considering Bitcoin and other major altcoins).

However, it also brings a hangover: The Crisis it is also more serious.

The current cryptocurrency situation is much more than simply people selling and dumping shitcoins on the market. We have almost a year of decline, the disastrous collapse of Luna and soon after the crash of FTX, before the market has breath to recover.

With that, we have a completely different moment and that is difficult to try to predict using data from what has happened before. The Bitcoin of 2022 is totally different from that of 2017 and that just brings us more mystery about what to expect for the coming months.

Still, historical data shows that investors can make significant gains by buying Bitcoin at oversold levels.