Fractal suggests Bitcoin price could almost double in 30 days
Bitcoin price is experiencing a small pullback to test previous resistance that has potentially turned as support. If the top cryptocurrency by market capitalization holds the level and moves up from here, it will continue to follow a fractal pattern that has emerged every time BTCUSD 3D price action passes through the Ichimoku cloud.
Let’s take a look at the technical tool, the fractal and previous instances of the same setup.
“Time” for another Bitcoin price fractal
Ichimoku is one of the few technical tools that takes into account time and not just price in its calculations and indicators. For example, the Chikou span is backplotted by 26 periods to show where the key levels occurred. The cloud itself consists of two spans – Senkou spans A and B – which are plotted 26 periods ahead to provide potential areas of future support and resistance.
The result is a historical and future graphical view of potential areas of interest. Ichimoku still has several individual indicators. Tenkan-sen and Kijun-sen focus on current price action, signaling when the Bitcoin price is bearish or bullish. The Tenkan sen in blue is crossed over the Kijun sen in red and the price is above both and has penetrated out of the cloud.
Will Bitcoin follow the fractal that forms after leaving the cloud? | BTCUSD on TradingView.com
Whenever these conditions are met, the bottom of the Bitcoin bear market was in and the crypto market continued to climb. It also resulted in a repeating fractal, which so far follows BTCUSD 3D charts eerily well. In addition to closely matching the price action, several technical tools suggest the same level of strength in bulls.
Lightning strikes twice with multiple techniques
If the fractal continues to be followed from here, the Bitcoin price could almost double in less than 30 days. Breaking out of the 3D Ichimoku cloud in 2015 resulted in a 2x rally before a pullback. In 2018, the same thing happened. Will it happen again now?
Zoomed in and with the fractal overlaid on the chart, we can get a closer look at the similarities. After an initial rally, the Bitcoin price consolidated at the top of the 3D Ichimoku cloud, only to eventually push through it. But it’s not just Ichimoku who points to a similar setup, either.
Not only is the price action the same, but technicals and time match as well | BTCUSD on TradingView.com
The Average Directional Index is at the same exact level as 2019. The ADX provides a measure of underlying trend strength, indicating that bulls are gaining steam. Shockingly, the LMACD below it is also at the same exact 0.07 reading from 2019.
