Is This Bitcoin Wave Fractal Following Oil’s Path to Negative Pricing?

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin’s halving is only a mere seven days away, and the bulls are already out in full force.

However, according to an eerily similar price fractal that preceded oil’s recent, record-breaking fall into negative territory playing out on Bitcoin price charts, the halving may have the opposite effect than people are expecting.

V-Shaped Bitcoin Recovery May Be Short-Lived If Oil Fractal Plays Out

The Black Thursday market collapse crushed nearly every financial market under the sun. It rocked the stock market, precious metals, and cryptocurrencies like Bitcoin.

It left both major US stock indices and Bitcoin setting a V-shaped recovery. The possibility of a bottom pattern has restored hope across the market.

The Dow Jones and the S&P 500 are both up over 30% from their bottoms. Bitcoin is once again trading at above $9,000 following a crash to $3,800.

Bitcoin’s recovery may be short-lived if a price fractal from a devastating oil crash just weeks ago that has since appeared on the price charts for the first-ever cryptocurrency plays out.

Epic Oil Crash Fractal Appears on BTCUSD Price Charts Ahead of Halving

Black Thursday and the coronavirus also set off a chain of events that led to a historic oil crash that shocked the world. Oil fell into negative price territory for the first time in the asset’s history.

Oil is one of the few assets that can actually fall to negative prices. This is due to the cost associated with storing the light crude commodity.

Just prior to oil’s now record-setting drop, the asset had made a V-shaped recovery. The price action closely mimics the recent rally in Bitcoin, taking the crypto asset to over $9,200.

$OIL AND #BTC 👀 pic.twitter.com/vBi1vDH60H

— ᴀʟᴛꜱᴛʀᴇᴇᴛ ʙᴇᴛꜱ (@AltstreetBet) May 6, 2020

Could a similar crash be next for Bitcoin that is nearly as shocking as oil’s fall into negative prices? Anything is possible in the current economic environment.

But, Bitcoin has something in its favor that oil didn’t have going for it.

The much-anticipated Bitcoin’s halving is just days away. The hard-coded reduction in BTC block reward miners receive is believed to have a bullish impact on supply and demand.

But because the narrative is so strong, the halving could also be used as a sell the news event. This occurring would match the oil fractal that took oil prices negative.

While there’s no cost to store Bitcoin that could drag prices into the negative, a failure to launch due to the halving and another strong selloff could be incredibly damaging to the fabric of the crypto market.

This could put Bitcoin price in danger of falling to new lows, or possibly zero. Just never negative.

Bitcoin’s halving is just seven days away. Will it cause Bitcoin to slip as bad as oil did, or will it perform more closely to gold as expected due to the reduction in the already limited supply?

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.