Though, a popular crypto trader recently shared a very familiar fractal seemingly confirming that the bottom is in.
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Fractal: Bitcoin Bottom May Be In
Trader Coiner-Yadox recently shared the two charts seen below, accentuating that the recent price action is looking eerily similar to the bottoming process seen in late-2018 and early-2019: both of the charts depict a vertical drop into a bottom, an immediate rally from the bottom, then a drawn-out ascending triangle to kickstart a new bull phase.
The only thing that the recent price action is missing is it rallying out of the ascending triangle as Bitcoin did in early-2019.
Thus, BTC following this fractal to a T will see it rally past $8,000 in the coming days.
Importantly, there are some key differences between the fractal’s basis and the current price action. These include but are not limited to: the last bottom took 140 days compared to the three-odd weeks for the current, and Bitcoin’s recent crash was due to a black swan event rather than simple market cycles.
Corroborating the cheery sentiment that the crypto market has bottomed, Bloomberg reported late last week that Bitcoin recently pushed above a key level of technical resistance, allowing the DVAN Buying and Selling Pressure Gauge to print a “positive divergence and a buy signal.”
The last time this signal was seen was at the start of January, just before BTC began a strong 50% rally to $10,500 by the middle of February.
Some Beg to Differ
Although possible, there are some that have thrown cold water on this fractal, which would create a “V-shaped” recovery on the charts.
Per previous reports from NewsBTC, when looking at Bitcoin’s chart through the perspective of Elliot Wave analysis, trader Smart Contracter thinks it remains bearish:
“[T]heres [sic] so many different ways you could count BTC here: either wxy, larger triangle, larger flat, I’m not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives. [F]or this reason, I think its still too early to call a bottom.”
His sentiment was corroborated by other Elliot Wave-focused analysts, who explained that Bitcoin’s recent rally on declining volume looks “corrective,” suggesting a reversion lower is growing more and more likely as time elapses.
Smart Contracter is known for calling Bitcoin’s $3,200 bottom in 2018 some six months in advance.
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