Bitcoin’s “Uncanny Resemblance” to $3,000 Bottom of 2018 Shows Price Could Soon Explode Higher

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

For those unaware, a fractal, in financial analysis terms, is when an asset’s historical price action is seen during a different time for another asset. This form of analysis isn’t that popular in traditional circles, but it has proven to be somewhat valuable in analyzing Bitcoin. The reason for this seems to be that the cryptocurrency market is extremely cyclical, even more so than the stock market or the business cycle in general.

One eerily accurate fractal suggests that BTC is in the midst of bottoming after the harrowing 15% drop seen last week, which plunged the cryptocurrency from $8,000 to $6,600 at its worst.

Bitcoin Has Bottomed, Fractals Suggest

According to a top cryptocurrency trader, Cantering Clark, there’s an “uncanny resemblance” between the BTC price action seen over the last few days and the bottoming and accumulation price action seen at the end of 2018 and the start of this year.

Indeed, as Clark’s two charts (seen below) show, the price action seen then and now are very similar directionality-wise, with there being drops now where there were drops in late-2018 and such.

“It would make sense that after the first major move up, that the first major correction and following accumulation period would have a fractal resemblance to the larger original,” Clark elaborated, pointing out the intricacies of the fractal.

Should the fractal play out in full, Bitcoin may be on the verge of exploding higher, likely past $8,000, then maybe even higher if bulls keep up the momentum.

This analysis lines up with one from an analysis named Stillman, who observed that Bitcoin’s price action late last month, when it hit $6,500, looked much like the ultimate bottom of 2018.

As the analyst noted in the chart, Bitcoin’s current price action over some of the last days in November looked exactly like it did during the historic cryptocurrency market bottom seen on December 15th, with there being a confluence (five, in fact) of structures and patterns seen then that were being seen on the chart in November. Even the Relative Strength Index (RSI) reading was printing a similar pattern.

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