Bitcoin has held up surprisingly well throughout the past day, with buyers maintaining its price above $7,000 despite facing multiple firm rejections around $7,200. This has led some analysts to note that a break above this level could be imminent.
This short period of consolidation also comes as a highly bullish fractal pattern emerges, which could signal that the cryptocurrency is gearing up for a movement up towards $9,000 in the days and weeks ahead.
This fractal is comprised of multiple striking similarities to those seen prior to the breakout rally Bitcoin saw in early January.
Bitcoin Consolidates Below Resistance as Bulls Lose Steam
At the time of writing, Bitcoin is trading up just under 1% at its current price of $7,090, which is around the point at which it has been trading at throughout the past couple of days.
Bitcoin’s major upswing from its weekly lows of just under $6,600 extended as far as $7,200, but the resistance found at this level has proven to be too great for the crypto to surmount with bull’s current strength.
If this level is shattered in the days ahead, the benchmark cryptocurrency will still face some heavy resistance around $7,500 – the level at which it faced a grim rejection at a couple of weeks ago.
This Fractal Could Mean a Rally to $9,000 is Imminent
There are a few technical observations that do seem to suggest a break above this heavy resistance zone in the lower-$7,000 region is imminent.
A few of these notable factors were outlined in a recent tweet from a popular cryptocurrency analyst on Twitter, who noted that Bitcoin’s current price action is strikingly similar to that formed in early-January prior to its breakout rally.
He notes that, among other things, both breakouts occurred on Fridays that were followed by quiet weekends, and both were preceded by “4% shakeouts.”
“Based on January – April fractal BTC should start its trend to $9000 on Monday. Observed the following similarities: – Both 4% shakeout before it broke out – Both created bullish engulfing candles – Both breakouts occurred on Friday followed by a quiet weekend while it retested,” he said while pointing to the patterns highlighted in the below chart.
Image Courtesy of Galaxy
The similarities between the price action seen now and that seen just before Bitcoin’s move from the lower-$7,000 region in January to highs of $9,600 are striking and could suggest next week will be highly bullish for the crypto.
Featured image from Unsplash.