Here is a fractal image for bitcoin (BTC) from 2019. This fractal is a good indication that bitcoin (BTC) prices could rebound back to $50,000 in the coming months.
This analysis is based on a fractal perspective and an indicator chart setup. This setup will be the basis of our analysis in this post.
Bitcoin just broke its 2019 fractal resistance line. This is a pattern that shows a certain level of price resistance before a long-term trend reverses. It looks like BTC can easily break through the next level of price resistance at $5,000. Thus, there is a good chance to see a rebound back to the $50k resistance level.. Read more about bitcoin price history chart and let us know what you think.Bitcoin (BTC) has prospects to reach $47,500-$50,000 given the strange similarity of its current trend to June-December 2019.
2019 Bitcoin Fractal
Specifically, bitcoin peaked on the 26th. June 2019 peaked at around $14,000 before falling the rest of the year due to profit-taking, as well as FUD caused by bitcoin cash’s hardforward, Facebook’s confrontation with regulators over its Libra crypto project, and the threatening tone of U.S. President Donald Trump and Treasury Secretary Steven Mnuchin regarding bitcoin.
The flagship cryptocurrency plummeted to nearly $6,500 in December 2019. At the same time, the 50-day simple moving average (SMA) has fallen below the 200-day SMA, which chartists call a death cross and view its formation as a sign of an impending long-term sell-off.
But at the same time, bitcoin bulls have kept the price above the 50-week SMA. The one-day chart of the crypto-currency showed the attempts of the bears to push the price below the 50-week SMA. But the bulls believed those failures every time.
Active buying near the 50-week SMA then led to a strong rally to the 61.8% Fib level, a Fibonacci retracement on the chart from a swing high at $14,000 to a swing low at $6,500.
bitcoin price action for 2019. Source: TradingView.com.
The 2019 fractal also illustrated at least two bullish divergence scenarios in which the price of bitcoin formed lower lows and its daily relative strength indicator, the Price Momentum Oscillator, made lower highs. This indicates weakness in the prevailing bearish momentum. And, as it turned out later, the price went up.
By 2021, bitcoin was back to half the 2019 scenario. Initially, the cryptocurrency’s correction from a record high of nearly $65,000 BTC/USD led directly to 50-week SMA support at $30,000. At the same time, the downward movement made possible the formation of the cross of death.
Bitcoin’s price action last week also indicated a bullish divergence scenario, as seen in the chart below.
April-June bitcoin price history. Source: TradingView.com.
TradingShot, a market analysis platform, noted that a bullish divergence formation combined with a bounce from the 50-week SMA support could send bitcoin prices back towards the 61.8% Fib level of the current falling Fibonacci retracement chart.
The 1W MA50 support is critical because it is reached even if bitcoin is at the lows (LL) while the 1D RSI is at the highs (HL), he explained.
This is a bullish divergence that was also seen in October and late November and early December 2019. This divergence was enough to initiate a decline to the 0.618 Fibonacci retracement level.Bitcoin Fractal 2019 and 2021. Source: TradingShot.com
On TradingShot’s chart, the 61.8% Fib level appeared at $47,500. Meanwhile, the other chart above showed a profit target around $50,000.
The statements come as bitcoin closed the second quarter with a 41% loss, the worst drop since a 43% selloff in the fourth quarter of 2018. Cryptocurrencies’ recent fall has been fueled by a barrage of negative fundamentals, including China’s crackdown on the cryptocurrency industry, increased scrutiny from global regulators, and Elon Musk’s anti-Bitcoin tweets.
At the same time, demand for bitcoin has also fallen following the Federal Reserve’s hawkish tone. The Federal Reserve has announced that it may raise interest rates by the end of 2023 to curb inflationary pressures, consistent with BTC/USD’s decline on the 16th and beyond. The month of June coincided.
Despite these headwinds, bitcoin has managed to surpass the psychological support level of $30,000 and is currently back above $35,000. However, an equally strong resistance level at $40,000 maintains the short-term bearish bias of the crypto currency.
We can expect that the longer we stay without the $40,000 level, the support will eventually give way to a sharp move towards $20,000, Fawad Razakzada, an analyst at ThinkMarkets, told The Wall Street Journal, noting that this leaves bitcoin on a crossroads in the third quarter.
Have all the negative fundamental factors already been taken into account? We can’t be sure, but if so, the bullish divergence on the 1D RSI is certainly a clue.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.Around the time Bitcoin reached an all-time high of $20,000 at the end of December 2017, some crypto traders noted that the price has only been moving in a fractal pattern since the beginning of the year. At the time, many only saw this as a coincidence. But, as Bitcoin approaches $20,000 again, some analysts are beginning to see that the price is moving in a fractal pattern.. Read more about bitcoin price 2020 april and let us know what you think.
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