After repeated attempts, Bitcoin has been unable to break through resistance at $10,000. However, a fractal that matches up nearly perfectly with price action from exactly one year ago, could point to the leading cryptocurrency by market cap finally breaching the key level, and pushing higher to $15,000.
First-Ever Cryptocurrency Cannot Break Above $10,000, Consolidation Continues
Bitcoin has historically shown strong performance during the month of June. Last June alone, the crypto asset had an over 50% spike from under $10,000 to as high as $14,000, before a strong rejection started a new downtrend in the asset class.
The leading cryptocurrency eventually bottomed out once again at under $4,000 and has since been on a steady incline, recovering almost all of the momentum lost from Black Thursday.
A strong rally began in April, just like the year prior, which continued all throughout May. The sell in May and go away strategy that many stock market analysts advocate, would have caused many investors to miss out on the pre-halving rally.
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Post-halving, however, things have been difficult to read.
The market has never been more bullish. Institutions are finally taking notice, and each day there’s another major player in the financial space talking about Bitcoin.
Yet, miners, an important piece of the overall puzzle that is the asset’s underlying fundamental health, are only increasing the BTC they sell into the market.
And although just one firm is buying up most of the newly minted Bitcoin, price still can’t break above resistance.
However, a fractal that matches up perfectly with the same price action at the same exact time last year, appears to indicate that Bitcoin is about to blast through resistance and make a run for $15,000.
Same PA, same time of year, one year later $BTC pic.twitter.com/GkjDrAHDCZ
— BitBox (@BitBoxed) June 4, 2020
Fractal From Last June Rally Points To Bitcoin Pumping To $15,000
Upon comparing the price action between last June and now, things look strikingly similar. A strong rejection from profit-taking once Bitcoin met resistance caused an initial drop, that was quickly bought back up. Eventually, an inverse head and shoulders-like chart pattern began to form.
But rather than the right shoulder push to the downside to confirm the pattern, the right shoulder spikes upward through resistance.
If the same fractal plays out yet again this June, it would cause a push to over $10,00 followed by a parabolic rise to over $15,000.
Comparing past parabolic advances, the June 2019 advance held support just above the final parabolic base during the 2017 rally. The June 2020 pump is now consolidating just above support left behind from the June 2019 final parabolic base.
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If Bitcoin can hold support here, it may use the former parabolic base as a launchpad to push higher, much as it has in the past.
Will history repeat in Bitcoin once again?