Too Obvious? Current Bitcoin Price Action Resembles $3,200 Bottom

The previous few months haven’t been form to Bitcoin bulls. Since peaking in June, the cryptocurrency’s value has fallen from $14,000 to the $7,700 low set final week.

Whereas the macro backdrop is evidently totally different, as are the basics of the cryptocurrency market, many analysts have argued that the current collapse within the Bitcoin value was a microcosm or fractal of 2018’s bear market.

Their assertion may very well have bullish implications for Bitcoin.

Associated Studying: Crypto Market Dying Cross Inches Nearer, Will The Bear Market Return?

Paying homage to 2018’s Bottom

In late-September, the worth of BTC tumbled off a proverbial cliff, falling from $10,100 to underneath $eight,000 in every week, as bears lastly received a multi-month tug-of-war in opposition to the bulls.

Whereas seemingly random, a variety of analysts have famous that this seeming capitulation was just like what passed off in November and December of 2018, throughout which Bitcoin fell from $6,000 to $three,000 in a brief time frame. Crypto Hamster not too long ago wrote:

“It’s too apparent to be true, however I’ve to confess that the drop from 6k to 3k and the next value motion certainly seems similar to what we now have now.”

What he’s implying is that Bitcoin might quickly break to the upside, having bottomed within the current flash crash.

Dave the Wave has corroborated this fractal, not too long ago posting the chart beneath, which reveals that Bitcoin’s total value motion from the $14,000 prime till now resembles all the worth motion that passed off in 2018.

The above analyst, nonetheless, did point out that he believes that the 2018 bear market fractal isn’t so helpful in predicting the underside, making reference to his $6,800 Bitcoin value goal nonetheless on the desk.

Associated Studying: Analyst: Bitcoin More likely to Transfer In direction of $7,600 as Bulls Falter

Bitcoin Price Reversal Beginning?

Regardless, there are technical analyses to counsel value reversal could also be inbound off this seeming backside. An analyst not too long ago wrote that Bitcoin’s four-hour chart seems “promising”, with there being an uptrend forming for each the Relative Power Index and the Shifting Common Convergence Divergence (MACD) — an indication that they declare is a sign that “we might have a backside”.

That’s not all. Per earlier stories from NewsBTC, the crypto market’s whole capitalization not too long ago printed a bullish divergence on its three-day chart.

As he depicted within the tweet that may be seen beneath, the three-day Stochastic has began to pattern larger, seeing larger lows, because the market cap has entered a short downtrend, seeing decrease lows — a bullish divergence that demonstrates that bears are dropping management to bulls. Bullish divergences can usually mark the top of a downtrend.

Associated Studying: Fractal: Bitcoin Price More likely to Hit $7,500 Earlier than Rally to New Highs
Featured Picture from Shutterstock

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