Bitcoin price action is actually quite predictable, suggests that BTC will actually consolidate/flatline for another month
Bitcoin price bounced back after falling as low as $ 11,400 on Friday. BTC is currently trading for $ 11,633, down slightly over the past 24 hours. BTC’s recent price action has puzzled experts as they believe the cryptocurrency is in a clear uptrend.
How will the Bitcoin price develop?
Bitcoin’s ongoing move lower is entirely unexpected or bearish. Crypto trader “Dave the Wave” shared the chart below, expressing this sentiment. It shows that Bitcoin’s recent price action is likely a fractal of the price action of May to the end of August of this year.
A fractal in technical analysis terms is when an asset’s historical price action is vast over a different time frame. Fractals can be used when analysts identify an asset’s price action on another point in the chart, then transpose this historic moment onto the current price action.
According to the trader, the fractal suggests that Bitcoin will likely flatline for the next four weeks or so in the $ 11,000 to $ 12,000 range, then break higher into a bull market.
He stated:
“Find this fractal of interest at the moment. With price now sitting on the buy zone/ log curve, wouldn’t be surprised if it settles down [relatively speaking] – current price action extended as compared to previous moves.”
Chart of BTC’s price action since February with a fractal analysis by crypto trader “Dave the Wave” | Source: TradingView
This fractal as well but has argued that the consolidation could end sooner than one month.
Volatility may come sooner than both interpretations of the fractal suggests, though.
From a macro scale, analysts are starting to see exciting movements in the stock market and in the foreign exchange market that could send the crypto market either shooting higher or reeling lower. And on a BTC scale, the analyst has noted that volatility is reaching levels that historically precedes a rally.
Brave New Coin crypto analyst Josh Olszewicz shared that the Bollinger bands are tightening. The Bollinger Bands are a technical indicator used to denote a market’s volatility and significant technical price levels/trading ranges.
While the bands are not as tight as they were before Bitcoin taking off in July, they are continuing to squeeze.
Read more:
- Nearly 20% Of Asked Americans Bought Cryptocurrency, But Most Of The Surveyed People Are Familiar With Bitcoin Only
- Top Analyst Expects ETH Will Reach $500 And Bitcoin Move Towards $14k