Bitcoin Following Scarily Similar S&P 500 Fractal Would Set New All-Time High By Late 2020

Tony "The Bull" Severino

1 year ago

3 mins read

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A shockingly similar fractal from the S&P 500 during the 2008 recession Bitcoin was born from is playing out across the cryptocurrency’s price chart.

If the first-ever crypto asset continues to follow the same path as the SPX did back then, Bitcoin will set a new all-time high record before the end of 2020.

S&P 500 Recession Fractal Appears on Cryptocurrency’s Price Charts

There’s no denying Bitcoin is at a critical moment in the cryptocurrency’s young life. But it may have been preparing for this moment for its entire existence.

Bitcoin was built during the economic recession that began in 2008. By January 2009 as the economy reached its worst point according to the bottom of the V-shape of the S&P 500, the Bitcoin core client was released into the wild.

In an odd twist, the price action of the S&P 500 back then almost exactly resembles the current BTCUSD price action following the February 2020 top, the subsequent Black Thursday collapse, and the steady rebound through now.

Lining up the two charts below, the resemblance is striking.

While the fractal is likely a mere coincidence and simply is mimicking the human emotional reaction that causes buying and selling of assets, it is interesting to note that the Bitcoin price action in question lines up perfectly with the stock market during its creation.

Bitcoin Birth Fractal Brings Asset To New All-Time High In November 2020

Upon zooming out, we can see that not only did the S&P 500 break the previous high, but it also continued into an uptrend that is only just now potentially coming to an end, some 12 years later.

Since then the cryptocurrency has grown from virtually worthless, to trading just under $10,000.

Resistance at $10,000 lines up with the top in the S&P 500 prior to the 2008 market collapse, which the S&P 500 broke through and never looked back.

Superimposing the same price action that followed from current levels over Bitcoin price action, shows the asset breaking through $10,000 any day now.

If Bitcoin price continued to follow the fractal, it would put the asset at a new all-time high by November 2020.

Fractals are a polarizing topic in the crypto world. Some analysts watch out for these repeating patterns like a hawk and use them to their advantage. Others say they’re worthless and just cloud judgment.

Dozens of fractals have been found that closely match BTCUSD price action, including fractals from Amazon, gold, and many more. At times, the cryptocurrency has shown correlation to avocados, Beyond Meat burgers, and most recently, the S&P 500.

What these other fractals don’t have going for them, is that they didn’t take place during the same timeframe that the first-ever cryptocurrency was created. Will this Bitcoin birthright fractal bring the asset to a new all-time high this year?

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.

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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.