Bitcoin has seen some afternoon volatility today after the cryptocurrency dipped as low as $8,400 before quickly surging up towards $8,800. This dip and subsequent rise further confirms the massive amount of support that exists directly below BTC’s current price level, and bolsters its bulls.
Now one prominent analyst is explaining that Bitcoin’s recent price action is closely mirroring a fractal pattern seen just prior to the parabolic rise in early-summer of 2019, which may suggest that Bitcoin will soon rally into the five figure price region.
This rally may lead it into a significant resistance region, but it is important to note that there is a key level just above its 2019 highs that could catalyze a move that allows BTC to set fresh all-time highs.
Bitcoin Rallies After Intraday Dip – Fractal Suggest Major Upswing is Inbound
At the time of writing, Bitcoin is trading up just under 1% at its current price of $8,740, which marks a notable climb from its daily lows of $8,400 that were set just a few hours ago during a sharp downwards movement experienced by the crypto.
Bitcoin’s rally from these lows has sent it to what appears to be near-term resistance, which may suggest that it will soon revisit its recent highs of $9,200 if bulls are able to successfully propel it above its this level.
The next series of movements that BTC experiences could help lead it up towards the five-figure price region, as one fractal pattern that the crypto is currently mirroring suggests that it will rally up towards $11,000 before it faces any notable rejection.
Dave The Wave – a prominent analyst who accurately predicted multiple notable BTC movements throughout 2019 – spoke about this factor in a tweet, saying, “shorter term…fractal still alive,” while pointing to the targets seen on the below charts.
Fractal still alive… pic.twitter.com/NoY5igvRCw
— dave the wave (@davthewave) January 21, 2020
BTC’s Rally Could Turn Parabolic If Next Upswing Leads It to Over $14,200
Although this fractal does suggest that there will be another prolonged multi-month correction before BTC moves past its 2019 highs, it is important to note that the key level it needs to break above in order for it to set fresh all-time highs is $14,200.
“History tells us that a weekly close above the 0.65 fibonacci will send BTC into a new parabolic bull run. The 0.236 fib has often acted as a bottom and the 4.23 fib has been exceeded each time. This means a weekly close above $14,200 would see BTC reach over $75,000,” NebraskanGooner, a popular cryptocurrency analyst on Twitter, explained in a recent tweet.
History tells us that a weekly close above the 0.65 fibonacci will send BTC into a new parabolic bull run.
The 0.236 fib has often acted as a bottom and the 4.23 fib has been exceeded each time.
This means a weekly close above $14,200 would see BTC reach over $75,000. pic.twitter.com/gBmUxx3nE7
— NebraskanGooner? (@nebraskangooner) January 20, 2020
If the eerily accurate fractal that Dave The Wave muses continues playing out, it appears to be a strong possibility that the crypto could be just a mere matter of months away from its next parabolic phase that leads it up towards $75,000.
Featured image from Shutterstock.