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Eerie Bitcoin Fractal Suggests Bottom in at $6.6k, Surge to $8k Likely

Bitcoin 2019/11/27 13:00 by Nick Chong

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Altcoin Returns to ICO Price After 11,100% Run: Bitcoin Dominates Crypto Market

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One eerily accurate fractal suggests that BTC is in the midst of bottoming after the harrowing 15% drop seen last week, which plunged the cryptocurrency from $8,000 to $6,600 at its worst. This may come as a surprise to the bears, who say that the asset is still poised to drop another 15% from here. 

Bitcoin is Bottoming, Fractal Suggests

Fundamental cryptocurrency-centric analyst Stillman recently posted the chart below, in which he notes that Bitcoin is in the midst of a fractal of BTC’s bottom in December 2018 at $3,150.

As the analyst noted in the chart, Bitcoin’s current price action over the past three days looks exactly like it did during the historic cryptocurrency market bottom seen on December 15th, with there being a confluence (five, in fact) of structures and patterns seen then that are being seen on the chart today. Even the Relative Strength Index (RSI) reading is printing a similar pattern.

If the fractal plays out in full, Bitcoin could easily rocket back into the $8,000 price range by the end of the week, which would mark a 10% surge from the current price point of $7,200.

It isn’t only a fractal that suggests Bitcoin is rapidly forming a price bottom.

John Bollinger, the prominent technical analyst that called the Bitcoin surge from $7,300 to $10,500 last month, said that he thinks that the “setup is looking good” for the crypto market to see a “turkey week bottom,” referencing the fact that it is American Thanksgiving this week.

Related Reading: Crypto Tidbits: Bitcoin Dives Under $8,000, Fidelity Bags Trust License, SEC Takes Second Look at ETF

This optimism has been echoed by popular trader Dave the Wave, an analyst that called the drop to $6,700 some months ago while everyone was calling for $20,000. He remarked that with BTC trading at the bottom of a medium-term channel and the RSI reaching an oversold level, he would be inclined to suggest that Bitcoin is prime to see a bounce.

Ready to Resume Long-Term Growth

The long-term, alongside the short-term, is starting to seemingly lean in favor of Bitcoin bulls. Popular trader Velvet noted in a recent analysis that Bitcoin’s current price action looks much like it did at the end of 2015, just months prior to the start of the bull market that brought BTC from $1,000 to $20,000. More specifically, BTC remains on the verge of falling out of a secular bull market while the monthly RSI is just above 50, just like in late-2015.

History repeating, his chart indicates, will see Bitcoin start rallying into the start of 2020 past $10,000 and beyond.

Featured Image from Shutterstock

The post Eerie Bitcoin Fractal Suggests Bottom in at $6.6k, Surge to $8k Likely appeared first on NewsBTC.

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