The leading cryptocurrency by market cap has only been around for just over a decade. Due to this, there isn’t much history in Bitcoin price charts to attempt to discover historical repeating patterns that can be used to help determine future movements.
The best example of a previous bear into bull market cycle playing out, can be found in the charts of the 2014-2015 bear market bottom, where the price of Bitcoin bounced hard into a new bull market after the final capitulation candle occurred. According to an inverse Bitcoin price chart, the current bear market bottom transforming into a bull market pattern is closely following a fractal from the 2014-2015 bear market, and it could help crypto analysts predict the upcoming price action as bullish momentum picks up steam.
Last Bear Cycle Fractal Shows Bitcoin Price Has More Runway Ahead
When there’s an air of bias across the market, either due to extreme FUD or FOMO, many crypto analysts and traders will flip a price chart upside down, in order to remove any preconceived bias from their analysis. These inverse price charts can often lead to the discover of new patterns.
In a pair of inverse Bitcoin price charts shared by crypto analyst FilbFilb, the two images compare the last bear market bottoming into a bull market transition cycle, and how it stacks up against what’s currently happening across the crypto market. The two charts are eerily similar, and show a parabolic rise coming out of a bottoming structure.
While i know i have said that there could be a $btc bull trap then lower to $5k, i need to share this.
If you think that we will do the latter part of the chart dont gamble entirely on $5k coming along and gifting you the accumulation.. Think longer term and dont be greedy. pic.twitter.com/D2CHRMjIoU
— fil₿fil₿ (@filbfilb) May 17, 2019
At the height of the parabolic rise is a long wick, showing that the price reversed and fell sharply from the local high, much like what happened overnight last night, as Bitcoin fell from near $8,000 to $6,600 in the matter of a few minutes.
After that, the price of the first-ever crypto asset took a pause for consolidation, then went back on a parabolic tear, causing Bitcoin price to grow more than 1,000% from the cryptocurrency’s bottom over the next nine months.
Should a similar spike occur, and the price per BTC grow 1,000% from the Bitcoin price bottom of the recent bear trend, it would take the asset 50% above its previous all-time high of $20,000 and set a new record for the cryptocurrency at above $30,000.
Fractals are patterns that repeat on the charts of a financial instrument, like Bitcoin and other cryptocurrencies. These fractals are usually a result of how humans emotions repeatedly play out, or are due to trading bots and their algorithms executing repeating trading strategies that are effective.
Related Reading | Why The Next Bitcoin Bull Run Could Eclipse The Last Crypto Bubble
Whatever the reason behind the fractal, if it plays out, Bitcoin will reach a new all-time high this year, and help take the crypto market to new, unimaginable heights.
Featured image from Shutterstock