Factors Stack In Favor Of Bullish Bitcoin Fractal, Despite Latest Plunge

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 price action is back in the low $30,000 range, after another failed attempt to reach $40,000 over the Father’s Day weekend. The effort from bulls is getting weaker and weaker, even now resulting in a “death cross” on daily timeframes. But could they be simply feigning weakness, ready to squeeze short traders and push prices back higher in a flash?

The stage is set well, so much so, the price action and several key technical indicators are closely mimicking the behavior right around one of the greatest pumps in Bitcoin history. Is that what’s to come in the days ahead?

Is The Bitcoin Bull Cycle Finished Or Is This Simple Consolidation?

Markets are cyclical and trends can stretch across years, to months, to weeks and even days. Technical analysts seek out the earliest signs of a trend and aim to capitalize on that trend as long as they can.

The Bitcoin uptrend from the Black Thursday low has clearly come to an end, and there’s now confusion in the market around if a downtrend is beginning, or if the more dominant primary uptrend stays intact.

If the greater bull market is now over for Bitcoin, it is among the shortest in its history. Analysts have expected cycles to be lengthening, which adds credence to the theory the bull cycle isn’t yet broken.

Instead, price action in the top cryptocurrency appears to be instead mimicking the technical patterns following the last major top, back in June 2019.

$bitcoin fractal$

Multiple signals match the last major post-rally death cross | Source: BTCUSD on TradingView.com

Fractal Offers Several Technical Factors To Support Record-Breaking Reversal Rally

After Bitcoin price broke down from its June 2019 top, there was a sharp downward move followed by consolidation. The same thing is playing out again now, and while that’s not enough to pay much attention to, the fact several trading indicators are showing a similar setup could be telling of what’s to come next.

Each major top since the bear market bottom followed the completion of a five-wave impulse based on Elliott Wave Principle. On the way back down, the RSI and LMACD made several lower peaks and troughs, following a curved downtrend resistance line.

Both instances also had a death cross on the daily, which turned into a history-making pump the last time the setup was there. Much like last time around, the daily RSI support was lost resulting in another push lower and forming a bullish divergence on the price chart.

The last time around, the LMACD also crossed down temporarily for just one daily close, followed by an explosive move up to above the death cross – a more than 40% move across two days.

A similar rally in Bitcoin percentage wise, would send the cryptocurrency back above $45,000 and hurdling toward $50,000 resistance. Making it back above that level would confirm the bull market is still on, while another crash deeper cannot be ruled out.

Even a far deeper correction, according to Elliott Wave, could go as low as $14,000 and the bull market could remain unbroken.

Featured image from iStock 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.