BTC On Its Way To $42,000 According to Late 2017 FRACTAL

In this technical analysis I will explain why $42,000 is a very realistic scenario for the price of bitcoin. According to the fractal from late 2017 we would still be able to have an upside potential of at least 20% before we enter a downtrend again.

From a TA perspective it seems hardly sustainable to see the price of BTC grow as much as it has this recent time period, but planning the trend reversal (besides being potentially very profitable) is going to be extremely hard.

The yellow line is drawn by taking the price data from the late 2017 to early 2018 period. This was the moment the previous bullrun happened and when we printed our previous ATH of slightly below $20,000.

Applying old data onto a current chart is called a 'fractal' and gives you the opportunity to understand what might happen in the future or what empirically could be a realistic scenario.

Using this specific fractal we can get an idea of what a realistic pivot point could be and what a realistic price target could be on a BTC that is still rising every day.

The incredibly sharp drop witnessed after the previous bullrun is what should scare you. The drop can be very very intense after the top has been seen. A chain reaction of panic can cause the price to drop really really quickly.

Just imagine when people start selling, the price will drop and newspapers and newschannels will start reporting on the drop. This will in turn create a very widespread awareness about the fact that the price is dropping and might cause even people who don't look at the chart daily to log in and start taking action.

We have seen a similar concept of course in the rise of the price. As soon as the all time high broke, lots of people would have been notified about bitcoin who previously weren't concerned about it. Simply because the media helped to spread awareness.

This caused the chain reaction that pumped the price to these massive new heights.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!

Comment:

Update, so far it has still followed the fractal. However, if it will still keep following it we should soon see a correction to about $35000. If this is not the case we should probably invalidate the remainder of the fractal.