Bitcoin is in consolidation mode after one of its biggest quarterly gains on record. All signs suggest that there is still more bullish left in this bull run, but according to a fractal found during the last major market cycle, a sudden low sweep is possible before the bulls regain control.
Here’s what to expect from the price action if this bullish fractal is ultimately a valid roadmap for what’s to come.
The price of Bitcoin is still trading at $ 10,000 below its highest peak in 2021, but since the daily close last night, the bulls have suddenly started to come back.
But before new highs are set, a sudden, sharp streak of lows could wipe out long positions taken in recent weeks. The warning stems from a fractal found during Bitcoin’s last great bull run, in 2017.
Related reading | A dangerous technical model in Bitcoin is back and shatters
The shaking movement occurred after a new, long and absolute record was set in the rear view, just like the current setup. He also made the historic rally from under $ 2,000 to nearly $ 20,000 per coin.
A similar response after the lows have been swept away would take the price per BTC to $ 200,000, meaning this is potentially the most lucrative ‘dip’ to buy before the next peak and the bear market.
Visually, the price action is strikingly similar | Source: BTCUSD on TradingView.com
By comparing the fractal side by side to the current price action, the similarities are easily seen. A larger, sharper peak initiates downward price action, with subsequent peaks each forming a decreasing size. After the fourth try, the bears take out the heavy artillery and push the price action through the support.
This move would free the market from over-impatient traders who positioned themselves too early, taking advantage of the market’s exuberance.
Related reading | Evening Star: Reversal Pattern Could End Bitcoin Price Action For Weeks
And just as sentiment turns to extreme fear, leaving investors wondering how deep the crisis will be, a V-shaped rally leads Bitcoin to another major correction before the cycle’s “ peak ” hits. the bear market.
The fractal appears to appear at the “ point of no return ” for Bitcoin, just before the final upward push. The most direct matching fractal is found in the 2017 rally, but even the middle of 2013 matches the pattern, albeit a much more volatile structure.
Is this the last major shakeout before $200K BTC? | Source: BTCUSD on TradingView.com
If the volatility in each of these models is reduced each time, this final instance of the fractal might not produce such violent results.
Either way, buying the bottom where the bottom of this current correction is could produce life changing wealth.
Featured image from Deposit Photos, Charts from TradingView.com
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