The fractal predicts Bitcoin will soon surge back towards the $20,000 highs, the chart much like the stock of Amazon did from the Dotcom Boom

By Tsunami On May 30, 2020

While Bitcoin is up 1% over the past two days, the crypto-asset market remains in consolidation.

BTC 4 hour chart | Source: Tradingview

After hitting $10,100 in late April, the cryptocurrency has stagnated under that key level. It has since traded in a relatively tight consolidation pattern from $8,500 to $9,500, failing to move decisively out of this range.

Though a popular trader says that Bitcoin is currently showing signs it will soon rocket higher. The sign cited is a fractal the asset has tracked for the past three years.

BTC looks much like it did in 2020’s Feb. Peak

A crypto trader recently shared the image below, showing that Bitcoin’s recent price action looks eerily similar to that seen at the February highs of $10,500.

Both periods have similar phases, including a triple-topping pattern indicative of a potential reversal.

Should BTC trade as it did after February highs, a strong drop could ensue in the following weeks.

Some people say re-accumulation. Some people say distribution. So far the structure is closely resembling the distribution of the last highs, albeit with more volatility pic.twitter.com/Km5N2epUsb

— joshnomics (@joshnomics) May 29, 2020

It isn’t only the similarities in the market structure suggesting Bitcoin is topping in the $10,000 range.

One prominent crypto trader recently shared the chart below of BTC’s price action since the start of the year with Bitfinex order book data overlayed.

The chart indicates that there is currently a mass of sell-side orders in the $10,000-10,300 range.

This is important as when Bitcoin rallied to and was rejected by the $10,000 range two times over the past month, there was also a sell wall in that range. This chart also shows that when BTC topped at $10,500 in February, it also ran into a confluence of sell orders at $10,500.

Should historical precedent hold, there’s a good chance BTC will see a price rejection if and when it rallies to $10,000.

Chart from crypto trader Coiner-Yadox

Bitcoin’s price action much like the stock of Amazon

Markets seemingly move without rhyme or reason, but this isn’t always the case.

Due to the psychology of investors, there are technical formations called fractals that show price action can repeat at different times and for different assets.

A prominent trader in 2019 identified that Bitcoin’s price action since early-2017 looks much like the stock of Amazon did from the Dotcom Boom to the recovery after the Great Recession. In other words, BTC may be following an Amazon fractal.

While this pattern was identified in late-2019, it has held up until today. The fractal predicted that Bitcoin would top early on this year, along with the capitulation event that took place in March.

Bitcoin and Amazon fractal chart from a popular crypto trader “Mr. Chief”.

Should the fractal play out in full, Bitcoin will soon surge back towards the $20,000 highs as the chart above indicates.

The fractal also predicts that by early 2021, the leading cryptocurrency will have established a new all-time high, likely at $25,000 and beyond.

Although the technicals indicate Bitcoin may soon top out, the fundamentals show a different story.

In spite of $BTC‘s mild -4.4% downswing today, its NVT looks healthy, and our model is showing a semi-bullish signal. The amount of unique tokens being transacted on #Bitcoin‘s network is slightly above average for in May, according to where price levels currently sit. ? pic.twitter.com/3BIcqTS3VN

— Santiment (@santimentfeed) May 22, 2020

The cryptocurrency’s on-chain trends remain decisively bullish, analysts say.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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