Bitcoin Mirrors 2021 Cycle in Reverse as ETH/BTC Breaks Long-Term Downtrend

Bitcoin fell 30% into a major long-term trendline, reflecting a reversed 2021 pattern while market sentiment shows fear instead of optimism.

Bitcoin Dominance reached 59%, mirroring the 2021 peak, indicating potential capital rotation into altcoins during a structurally similar market phase.

ETH/BTC broke its long-term downtrend, signaling renewed relative strength for Ethereum and possible momentum for the broader altcoin market.

Bitcoin 2021 cycle analysis has re-emerged as market observers compare the current retracement with a structural pattern seen four years ago. The asset recently completed a sharp decline while resting on a long-term rising trendline, prompting renewed discussion on market positioning.

Market Structure Resembles a Reverse of the 2021 Pattern

Analyst Merlijn The Trader noted on social media that Bitcoin has recorded a 30% correction, landing on support that has been respected for several years. In his view, the structure mirrors the 2021 setup, though the emotional tone is markedly different. The earlier cycle saw traders expressing confidence near resistance, while the present environment carries a tone of fear.

He explained that the pattern appears reversed, with price now pulling back into support rather than rising into pressure. This comparison has drawn attention within the community due to the symmetry in movement despite contrasting sentiment. The analyst added that current reactions are shaped by caution, even as technical signals lean toward stabilization.

Further commentary stated that the charts “whisper accumulation,” reinforcing the argument that the recent drop may align with a structural preparation phase. The message aims to counter widespread assertions about a deeper downtrend.

Bitcoin Dominance Rejection Aligns With a Historical Level

Merlijn also referenced Bitcoin Dominance, which touched 59% before turning lower. In 2021, a similar rejection preceded capital rotation into alternative assets. The analyst suggested that this formation is again developing, though the emotional backdrop differs from the previous cycle.

According to his analysis, traders in 2021 responded with optimism as dominance weakened. The current phase shows the same rejection pattern, yet sentiment is shaped by caution rather than enthusiasm. This contrast forms a core part of the comparison between cycles.

He argued that the structure may point toward renewed interest in assets outside Bitcoin as dominance softens. The scenario is being monitored closely, given the historical relevance of the level.

ETH/BTC Breakout and Historical Timing Perspective

Another key component is the ETH/BTC pair, which recently broke its long-term downward path. Merlijn noted that in 2021 the pair moved lower before Bitcoin reached its peak, whereas it is now breaking higher during broader uncertainty.

This development has sparked questions regarding relative strength within the market. Observers view the breakout as a shift that may influence rotational flows if the pattern continues. It is being referenced as another sign of repeating structure in the opposite direction.

Rekt Capital added a broader historical view, stating that Bitcoin typically breaks below its major resistance and support band in 2026. He suggested that a breakdown this year would not match historical timing, which leaves room for a market rebound from current levels.

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