For Brandt, there is also little reason to dismiss Bitcoin on the back of current price action.

“Head and shoulders tops need not always produce a bear market to the implied target or beyond,” he wrote.

“This pattern can also fail (bullish) or morph into a larger congestion (exhausting).”

An accompanying chart showed last week’s all-time high of $67,100 surrounded by two lesser peaks, resulting in the so-called “head and shoulders” formation.

Traditionally, such events preclude an extended downside for an asset, with theupside exhausted and unsustainable after a certain point is reached.

Meanwhile, the idea that Bitcoin could slide into an extended sideways period has reentered the narrative in recent days. Cointelegraph contributor Michaël van de Poppe earlier forecast a slow grind toward $90,000, this potentially only hitting early next year.

All going to plan

For those worried about further losses on BTC/USD, decreasing funding rates — now all but “reset” after the flushing out of leverage — could allay fears.

Bitcoin price dip matches October 2017 with BTC ‘explosion’ still forecast before 2022

Binance had been a particular source of concern over the week with large upside bets creating an unwieldy setup, which ultimately fell apart on the dip.