Bitcoin Fractal From Last Bull Run Warns Of Sudden Sweep of Lows

Tony "The Bull" Severino

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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.

$bitcoin price fractal$

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.

And just as sentiment turns to extreme fear, leaving investors wondering how deep the violent drop will go, a V-shaped recovery takes Bitcoin to only one more major correction before the “top” of the cycle is in and bear market starts.

The fractal seems to appear at the “point of no return” for Bitcoin, right before the final push to the peak. The most direct-matching fractal is found during the 2017 rally, but even the 2013 mid-point matches the pattern, albeit a far more volatile structure.

$bitcoin price fractal$

Is this the last major shakeout before $200K BTC? | Source: BTCUSD on TradingView.com

If the volatility in each of these patterns gets lessened each time, this latest instance of the fractal might not produce such violent results.

Whatever the case may be, buying the dip wherever the bottom of this current correction is, could produce life-changing wealth.

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.