Bitcoin fractals showing a big move up is coming later this year
There seems to be a strong support zone created by a previous consolidation in October- November 2017 that is on a nice up trending slope.
We also have created a fractal which first occurred on November 12th when bitcoin took off and when it hit lows on February 6th. We have created a smaller version of that pattern from February 6th to today. Further supporting this fractal pattern is pitchfork trend made with the bold red lines that both patterns have used on the downward legs. The black line of resistance also matches the same relative point where both these patterns originally broke down at the double top of their patterns which also matches the pitchfork trend.
It looks like we will be creating another tiny little fractal that will lead into May. This would create a very large triangle pattern and bitcoin price moves have always occurred from triangle patterns. The larger the triangle formation the larger the next move is. In the past year bitcoin triangles typically consolidate over 2 months, in comparison this triangle consolidation is looking to be a 6 month pattern so we should expect a very large movement! If this pattern plays out the movement could lead to prices of $100,000-$250,000 by the end of the year followed by a very long and big correction. I believe this idea to have strong support as the current 6 month pattern we are in is very similar to what happened in early 2013 when bitcoin peaked around $260 crashed below $100 and then proceeded to reach over $1000 by the end of the year. In the long run trend, since bitcoins inception, we are also at a relatively similar position which makes over $100,000 a feasible price to reach.
I believe this support zone will continue to hold as it was the last place consolidation happened before bitcoin really took off. This is a consistent pattern for bitcoin, after corrections bitcoin recovers and take a little break to consolidate before making the big move up to the next level. This consolidation zone acts as support for the next correction. Also RSI on the daily is currently flirting with the oversold zone at 30 which is typically a strong support for bitcoin.
There always is the possibility of a bear trap and dipping down to lower levels at the lower supports. For this to occur I believe we would need some new very negative news to trigger it.
We also have created a fractal which first occurred on November 12th when bitcoin took off and when it hit lows on February 6th. We have created a smaller version of that pattern from February 6th to today. Further supporting this fractal pattern is pitchfork trend made with the bold red lines that both patterns have used on the downward legs. The black line of resistance also matches the same relative point where both these patterns originally broke down at the double top of their patterns which also matches the pitchfork trend.
It looks like we will be creating another tiny little fractal that will lead into May. This would create a very large triangle pattern and bitcoin price moves have always occurred from triangle patterns. The larger the triangle formation the larger the next move is. In the past year bitcoin triangles typically consolidate over 2 months, in comparison this triangle consolidation is looking to be a 6 month pattern so we should expect a very large movement! If this pattern plays out the movement could lead to prices of $100,000-$250,000 by the end of the year followed by a very long and big correction. I believe this idea to have strong support as the current 6 month pattern we are in is very similar to what happened in early 2013 when bitcoin peaked around $260 crashed below $100 and then proceeded to reach over $1000 by the end of the year. In the long run trend, since bitcoins inception, we are also at a relatively similar position which makes over $100,000 a feasible price to reach.
I believe this support zone will continue to hold as it was the last place consolidation happened before bitcoin really took off. This is a consistent pattern for bitcoin, after corrections bitcoin recovers and take a little break to consolidate before making the big move up to the next level. This consolidation zone acts as support for the next correction. Also RSI on the daily is currently flirting with the oversold zone at 30 which is typically a strong support for bitcoin.
There always is the possibility of a bear trap and dipping down to lower levels at the lower supports. For this to occur I believe we would need some new very negative news to trigger it.
The new red trend line are just estimates but the first red trend resistance line seems to be pretty close to where resistance was first experienced. I except price on consolidate for another week into this juncture. From here we might go down for more accumulation or break out into a bull market.