Bitcoin Fractal Found Resembling Past Local Tops, But More Upside Is Imminent

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin today smashed above $20,000 and recaptured mainstream media headlines everywhere. FOMO is now full steam, and there’s no telling where the cryptocurrency might stop – unless a fractal forming plays out exactly as it has in past instances of the repeating pattern.

Bulls need to fear not, however, as the same fractal suggests that after a meager correction, more upside is imminent.

Bitcoin Fractal Discovered That Suggests Any Downside Ahead Will Be Limited

Bitcoin above $20,000 is no longer something crypto holders hope for but is a reality starting today. The asset in 2020 has taken the world by storm, attracting not just retail investors, but corporations, hedge funds, and institutions.

The substantial capital required to get the cryptocurrency above the key resistance is finally here, and three full years after Bitcoin set its previous all-time high, a new one has been set.

But the strong impulse move up today might have actually signaled that the short-term top was in. A repeating pattern called a fractal has formed on Bitcoin price charts, and if the third time is the charm, a correction is coming as soon as tomorrow and beyond.

The pattern also predicts that any downside will be limited, and would be followed by a sizable move upward.

This Bitcoin fractal could indicate a short-term top if the pattern repeats | Source: BTCUSD on TradingView.com

Crypto Chart Patterns And Why Humans Love To Recognize Repetition

Fractals are a repeating pattern, plain and simple, and can be found in everything from Bitcoin price charts to snowflakes.

As an evolutionary survival mechanism, the human brain is hard-wired to recognize patterns ahead of processing information related to it. Patterns can also make people feel a certain way, which is why music can be so powerful or soothing.

Recognizing such patterns on price charts can work against an analyst, which is why fractals are often frowned upon. But looking at the chart above, it is difficult to deny there is a striking resemblance.

Each of the first two patterns came from an impulse move before it, where the first reaction in hitting the next major level of resistance, creates the first V-shaped structure.

A somewhat rounded, head-like shape forms, as if a right shoulder is coming next, but instead Bitcoin reaches for the next resistance level.

Each time at this point, the cryptocurrency has been rejected from the attempt any higher, fell back down to current levels, then the correction deepened.

But just as market sentiment turned bearish, another bullish impulse caught both bulls and bears off guard, and here we are. Now, the pattern is forming again, and Bitcoin just made its big stretch above $20,000.

The local top patterns before it took place at $10,000 and $12,500 respectively. How does this third potential pattern ultimately play out?

Featured image from Deposit Photos, Charts from TradingView.com

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.

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