A fractal appearing on Bitcoin price charts suggests crash is on the way, followed by much worse: more painful sideways
Bitcoin price recently broke out of a tight trading range, triggering a mass rally by crypto speculators, pushing the price to $ 12,000. But even when sideways trading ended, a fractal appearing on the asset’s price charts suggests that a crash is on the way, followed by much worse: more painful sideways.
Bitcoin price and crypto market 2020 roller coaster ride
2020 is a roller coaster for Bitcoin, unlike any year. BTC went from trading at around $ 6,500 to $ 10,000, then dropped to $ 3,800 on Black Thursday. A few days ago, it touched above $ 12,000, and analysts are now targeting a retest of $ 13,800 before another attempt at $ 20,000 is made.
But the bulls will likely outpace themselves soon with more bullish targets. While volatility has just returned, another boring lull may be ahead. A segment that matched the last consolidation period has emerged, closely resembling the recent price action. And if price action continues to follow the fractal, another short-lived crash is ahead, followed by more max pain scenario: a return to extended sideways trading.
Taking the same price action above, and superimposing the first red box into the second provides the path outlined for Bitcoin by the fractal. A continued crash to below $ 11,000 is likely to take place over the next several days, followed by a rally to new highs. A slow and sideways downtrend will take place until volatility fades again, and another upward breakout occurs.
BTCUSD Daily Price Chart Sideways Fractal | Source: TradingView
Fractals are a polarizing subject, with some analysts digging deep to discover them, while others claim they cloud bias. Adding more credence to this theory, however, is as similarly recurring pattern following Bitcoin’s last bottom.
A similar sideways period took place in late 2015 into early 2016. Bitcoin spent several months locked in a tight trading range before substantial expansion.
BTCUSD Daily Price Chart Fractal 2016 Comparison | Source: TradingView
An enormous move took place, followed by a correction, and as you can see below, more sideways. After that, the bull run that put crypto on the map took place.
If a similar story takes shape across the crypto market, Bitcoin won ca see further upside until late September or early October at the soonest. However, according to 2016, that was the last stop before a new all-time high was set.
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