Bitcoin Fractal From Last Bull Run Warns Of Sudden Sweep of Lows

0
92

Bitcoin is in consolidation mode after one of the biggest quarterly gains on record. All signs indicate that there is more upside potential in this bull run, but according to a fractal found during the last major market cycle, a sudden low is possible before the bulls regain control.

Here’s what to expect for price movement when this ultimately bullish fractal is a valid roadmap for the future.

Be ready to buy the dip when the fractal shaping is accurate

Bitcoin price is still trading at $ 10,000 below its highest high in 2021, but since last night’s daily close, the bulls have suddenly started a comeback.

However, before new highs are hit, sudden and sharp lows can clear the long positions taken in recent weeks. The warning comes from a fractal found during Bitcoin’s last major bull run in 2017.

Related reading | A dangerous tech pattern in Bitcoin is back and collapsing

The shakeout move came after a new all time high was set and it was long in the rear view, just like the current setup. The historic rally continued from under $ 2,000 to nearly $ 20,000 per coin.

A similar reaction after breaking the lows would push the price per BTC up to $ 200,000 – meaning this is possibly the most lucrative “dip” to buy before the next high and bear market.

Visually, the price movement is strikingly similar. Source: BTCUSD on TradingView.com

Comparing the Bitcoin Fractal Before “The Point of No Return”

If you compare the fractal with the current price movement side by side, the similarities are easily visible. A large, sharper peak starts the price’s downward movement, and subsequent peaks each form a decreasing size. After the fourth attempt, bears pull out the heavy artillery and push down price action by providing support.

The move would free the market from overzealous traders who got into position too early and took advantage of the exuberance in the market.

Related reading | Evening Star: Reversal patterns could drown Bitcoin price action for weeks

And just as sentiment turns into extreme fear, and investors wonder how deep the sharp decline will go, a V-shaped rebound causes Bitcoin to only make one bigger correction before it hits the “top” of the cycle and the bear market begins.

The fractal appears to appear at the “point of no return” for Bitcoin, just before the final pressure of the climax. The most directly matching fractal will be found during the 2017 rally, but even the 2013 midpoint follows the pattern, albeit a far more volatile structure.

Is this the last major cleanup before $ 200,000 BTC? | Source: BTCUSD on TradingView.com

If the volatility in each of these patterns decreases every time, this final instance of the fractal may not produce such violent results.

Whatever the case, buying the dip, whatever the reason for this current correction, could bring about life-changing prosperity.

Featured image from deposit photos, charts from TradingView.com