An oddly similar fractal mimicking Bitcoin’s price action during last year’s parabolic advance has started to form after the latest dip below $9,000.
If the first-ever cryptocurrency continues to follow the same pattern, the asset could target as high as $15K before August 2020 is over.
Repeating Patterns Called Fractals Can Tip Traders Off To The Next Major Move
Financial markets are cyclical, and it’s said that history often repeats. When repeating price patterns appear across the charts of various financial assets, they are called a fractal.
These fractals appear and repeat because they represent different patterns of human behavior and emotion that also recur regularly. It is this behavior and emotion that is driving the balance of buying and selling that makes up price action.
Because these patterns can have similar underlying influences, crypto analysts often compare fractals across the same asset, or even comparing them against one asset to another.
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Crypto analysts claim the altcoin market is following an early Bitcoin cycle. Others claim that Bitcoin is following gold, Amazon stocks, or even the S&P 500.
Some of these fractals hold weight, while others only cloud judgment and add a layer of preconceived bias that can lead to overly strong conviction and even losses.
One fractal that may be playing out so closely matches the price action from Bitcoin’s rally just one year ago, it’s difficult to ignore. Especially because the fractal has a short term price target of $15K.
Source: TradingView
Bitcoin June Moon Fractal Reappears, Targeting Nearly $15K
Following Bitcoin’s most recent fall to below $9,000, the asset completed a move that now makes the price action look freakishly similar to the same exact price action from one year prior – almost to the day.
An early May pump above resistance had the asset consolidating for nearly a month. During that time, many attempts to break above the next horizontal resistance failed, but any rejections held strong above support.
After a strong pump in the middle of the pattern, Bitcoin price fell one last time to support – matching today’s move.
Source: TradingView
From the consolidation came powerful expansion, and another strong uptrend and rally began. Bitcoin reached a high of $14,000 before it was rejected and another downtrend formed.
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Layering the previous price action over the current price action strikes a shocking resemblance, but the pattern isn’t perfect.
If it does stay on track, however, it would lead to a breakout before the 4th of July American Independence Day holiday, giving bulls a reason to celebrate with fireworks as the next target would be $15K.
Featured image from Shutterstock.