Bitcoin is in consolidation mode after one of its largest quarterly gains on record. All signs suggest that there’s still more upside left in this bull run, but according to a fractal found during the last major market cycle, a sudden sweep of lows is possible before bulls regain control.
Here’s what to expect for price action if this ultimately bullish fractal is a valid roadmap of what’s to come.
Be Ready To Buy The Dip If Fractal Forming Is Accurate
Bitcoin price is still trading $10,000 below its highest peak in 2021, yet since last night’s daily close bulls have suddenly begun to make a comeback.
But before new highs are set, a sudden and sharp sweep of lows could clear out long positions taken over the last several weeks. The warning stems from a fractal found during Bitcoin’s last major bull run, in 2017.
The shakeout move arrived after a new all-time high was set and long in the rear view, just like the current setup. It also proceeded the historic rally from under $2,000 to nearly $20,000 per coin.
A similar response after the lows are swept, would take the price per BTC to as high as $200,000 – meaning that this is potentially the most lucrative “dip” to buy before the next peak and bear market.
Visually, the price action is strikingly similar | Source: BTCUSD on TradingView.com
Comparing The Bitcoin Fractal Before “The Point Of No Return”
Comparing the fractal with current price action side by side, the similarities are easily visible. A large, sharper peak starts the downward price action, and subsequent peaks form each decreasing in size. After the fourth attempt, bears pull out the heavy artillery and push price action down through support.
The move would clear the market of over-eager traders that got into position too soon, taking advantage of the exuberance in the market.
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