Since the $ 8,600 lows seen at the start of the week, Bitcoin has mounted a strong comeback, recovering to ~$ 9,800. A growing number of analysts, however, have said that the recovery is just noise in an otherwise bearish trend. They cite fractals and textbook patterns suggesting that it is only a matter of time before BTC falls back towards the $ 8,000s, then maybe even lower. Bitcoin Looks Almost Exactly Like Gold — and That’s Bearish A fractal is a technical term used by investors to describe a phase of price action that repeats at different times and/or for different assets. As Investopedia explains: “Fractals also refer to a recurring pattern that occurs amid larger more chaotic price movements” Bitcoin’s price action from the March lows until today, according to a top trader, is almost identical to that of gold from the March lows. Both assets have extremely similar trajectories and a consolidation pattern at their respective local highs that are structurally similar. According to charts shared by the trader, who said that Bitcoin’s price action is a “carbon copy” of gold, BTC could soon fall towards the $ 8,000s to match gold’s price action. Bearish Bitcoin and gold price chart shared by cryptocurrency trader “TraderXO” (@Traderx0x0 on Twitter). Related Reading: Crypto Tidbits: $ 200M of Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish Not the Only Sign of Impending Downside The expectations that Bitcoin will fall towards the $ 8,000s have been echoed by another trader, who said that BTC’s recent price action looks much like a schematic outlined by technical analyst Richard Wyckoff. The trader said in reference to Bitcoin’s bearish rejection at $ 10,500 earlier this week and how it looks like a Wyckoff pattern: “Volume-wise I can’t look past distribution up here given the reaction to the high sweep. There are very few re-accumulation ranges that we would expect to see that contain a move above the range which was so strongly rejected. Typically in a re-accumulation structure this move would hold, not come back inside. That’s usually one of our first signs of distribution.” Bitcoin Still Long-Term Bullish Despite the expectations of downside, the fundamentals and on-chain metrics show that the Bitcoin ball is still squarely in the court of bulls. Per previous reports from NewsBTC, Hans Hague, a senior quantitative analyst at crypto-asset fund Ikigai Asset Management, noted that on-chain metrics show the asset is in “heavy accumulation.” Hague added that with the block reward halving, which decreases the supply of BTC coming on the market, the market may soon see “fireworks.” Also bullish is Blockstream CEO Adam Back, who said that the “money printing” going on in the world in response to the recession, he sees BTC hitting $ 300,000 in the next five years. Related Reading: There Are Three Fundamental “Waves” That Could End Ethereum Bears in the Long Run Featured Image from Shutterstock Price tags: xbtusd, btcusd Bitcoin’s Chart Looks Like a “Carbon Copy” of Gold, and That’s Bad for the Bull Case
NewsBTC
Free Chance for Alpha Prestige Fusionist NFT
-
Recent Posts
- Bitcoin’s daily transactions reach new record high
- Price analysis 4/24: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
- Solana Memecoins WIF And BONK Explode By Double Digits: Key Reasons
- Ripple Vs. SEC Update: Is The Lawsuit Finally Coming To An End With A Settlement?
- Analyst Outlines XRP Price Scenarios Ahead Of Ripple-SEC Case Update
Recent Comments
Archives
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
Categories