Fractal: Bitcoin Price to Surge Back Above $10,000 in Coming Weeks
While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.
A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.
One fractal popularized by a well-known individual on Crypto Twitter suggests that BTC is ready to bound even higher in the coming weeks. In fact, the fractal suggests that it will only be a few weeks before Bitcoin retakes $10,000, then continues higher from there.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
Bitcoin Fractal Implies $10,000 Inbound
Recently, popular crypto commentator Starbust recently posted the chart below, depicting Bitcoin’s price action in mid-2017 — the middle phase of the last bull market. During the highlighted period, Bitcoin had found a local top at $3,000, retreated in a descending triangle, capitulated as low as $1,900, then shot higher in a massive spike to the upside, creating a bull flag.
That’s cool and all, but where does the fractal come in? You might be asking. Well, Starbust also posted this image, which shows Bitcoin’s price action from the peak in June to now. This period also saw BTC find a local top, retreat in a descending triangle, capitulate, then surge out of that capitulatory bottom to establish a bull flag.
Bitcoin playing out this fractal in full will see it rally to the upside to retake $10,000 and beyond in the coming weeks.
Related Reading: Crypto Market to Form Golden Cross as Bitcoin Gains Momentum Above $9k
Does This Have Credence?
Fractals alone, however, aren’t good enough to determine Bitcoin’s future price action. But there is a confluence of technical signals implying that strength is building for the leading cryptocurrency.
Trader Smokey recently argued that it makes no sense that traders have a strong bearish bias here. While he did admit that Bitcoin has yet to break above a trendline resistance and the weekly horizontal resistance of $9,600, he noted that BTC has decisively reclaimed $9,111 — a level which has been essential for the cryptocurrency since May.
What’s more, the buying volume on the reclamation of this key support was higher than it was on the breakdown, implying that bulls are attempting to assert control over the market.
Also, a trader going by HornHairs has noted that he likes the chances Bitcoin hits $14,000 before $7,000, highlighting how the cryptocurrency held above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot point.
Related Reading: Bakkt Bitcoin Futures See Huge Week: Growing Institutional Interest
Featured Image from Shutterstock
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Nick Chong, Khareem Sudlow
