Despite Bitcoin’s decline from its recent all-time high and a growing sense of fear among investors, veteran trader Alessio Rastani remains optimistic about the asset’s near-term prospects.

Sentiment diverges from price

Many market participants are voicing concerns that the bull market has ended, with some predicting a prolonged bear phase until 2026.

However, Rastani, in a recent interview, argues that the current conditions more closely resemble past setups that have led to strong rallies.

Chart patterns and technical indicators

Rastani highlights that a technical pattern, which historically follows so-called death cross events, has been a reliable precursor to price rebounds.

According to his analysis, this setup has resulted in a rally in about 75% of similar past situations.

He also points to extreme sentiment indicators and oversold technicals as further evidence of a potential upside move.

No blow-off top yet

Rastani disputes the idea that Bitcoin has already formed a ‘blow-off top,’ a feature that typically marks the end of a major cycle.

He believes the absence of this pattern suggests the most recent high may not be the cycle’s terminal peak.

Caution against overreliance on cycles

Addressing the bearish cycle theory, Rastani warns against relying solely on timing cycles, stating that price action should guide investor decisions. He explains:

“Relying solely on timing cycles can be dangerously misleading, and price action tells a very different story.”

For a deeper dive into Rastani’s technical reasoning and chart analysis, viewers can watch the full interview on Cointelegraph’s YouTube channel.