Bitcoin seems more like a kaleidoscope with repeating patterns eyeing $7,700
Bitcoin’s price is a mystery, much like the stock market. Anyone who says they’ve cracked the market is more likely to be laughed at than taken seriously. However, sometimes, there are moments of Déjà vu, where it feels like a particular moment has happened before. Bitcoin is seeing one of those moments right now; the said pattern is now repeating for the 3rd time since 2017.
The first time was after the price hit a peak in 2017 and then dropped suddenly during the hash war of 2018. Again, the same pattern was repeated in 2019, between July and September, and finally, when the price collapsed on 25 September when Bakkt was launched. Both of the listed instances can be seen in the chart below.
The third repetition, however, came after the recent surge above $9,000 on 28 April 2020. As of now, the price looks is exactly the same as the first two patterns. A comparison to the second pattern is shown below.
What does this mean for BTC?
Since the fractal is taking place on the hourly time frame, it would suggest a faster completion of the pattern. The target, should the pattern follow through, would b $7,700 to $7,500. Perhaps, even higher. However, an important counter-argument here would be, if it follows through.
With the Bitcoin halving scheduled to take place in less than 10 days, this seems highly unlikely. Then again, Bitcoin has done the impossible under much worse circumstances. Additionally, using Fibonacci Retracement from the recent dip to the peak created recently showed that the price is close to returning to the 78.6% Fib level aka $8,275.
Additionally, the supports based on price action reveal two important levels – $8,582 and $7,756. The latter level is quite close to the 0.618 Fib level [at $7,331]. With uncertainty around the world, Bitcoin could do anything, move in any direction. However, based on the fractals and its completion, the price is eyeing the $7,750 level.