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Fractals are repeating patterns that are commonly found all throughout nature but also playing out on the price charts of financial assets like Bitcoin and other cryptocurrencies.

One prominent crypto trader has pointed out that the current price action playing out on lower timeframes appears to be a fractal of weekly price action, but even the weekly price action may be a fractal from the past.

Fractals are everywhere. They’re found in the formation of plant leaves, and in the way snowflakes form. They’re also all over Bitcoin charts.

According to a prominent crypto trader, the current price action on lower timeframe Bitcoin charts, appears to near perfectly match up against the price action taking place across weekly timeframes.

#bitcoin: Current PA is literally just a fractal of weekly PA.

Which way does it break? I don't know, let's find out together. Flat on everything pic.twitter.com/UuDlqQAXND

— Calmly | full-time trader (@im_calmly) November 10, 2019

After a powerful move up on the news that China would be supporting the blockchain technology Bitcoin is built on, resulting in the asset’s third-largest 24-hour price gain ever, Bitcoin began to consolidate, and finally broke down.

Once the breakdown occurred and the market once again turned bearish, another powerful spike up over the weekend liquidated longs, and the asset has since fallen back down to the $8,700 range where it is currently trading.

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The entire move appears to closely mimic Bitcoin’s parabolic rally in early April, which took the price of the crypto asset to $14,000 before it was rejected and began consolidating.

Just like the low timeframe movement, Bitcoin price fell from the consolidation trading range, and after setting a local low, spiked back up with strength, but ultimately dropped once again.

The fractal itself that’s playing out on lower timeframes, may be a fractal itself. Current price action on weekly timeframes, when viewed on the 3-day timeframe, appears to perfectly match the price action seen in Bitcoin markets back when the crypto asset set its all-time high price back in December 2017.

Both charts depict a descending triangle formation, that broke down into a bear flag. The bear flag itself ended up being a bear trap, with a massive spike in the middle that confirmed the descending triangle’s former support as resistance, before the real fall and downtrend began.

Just as price action played out following the breakdown from all-time high, Bitcoin could fall into a deep downtrend that mimics the 2018 bear market, before finally returning to a bull run.

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After Bitcoin confirmed the descending triangle support as resistance – a price of $13,000 at the time – the crypto asset fell back to local lows around $10,000, and had a substantial drop taking the price of the cryptocurrency to $5,800 in February 2018, shocking fear into the crypto market.

If the same price action plays out, Bitcoin could once again form a V-shaped low around $5,800 if the bear flag Bitcoin has returned to breaks down – just as it did the last time around. Only time will tell if these fractals are indeed valid, but how similar they appear is certainly convincing.

The post Bitcoin Low Timeframe Fractal Matches Weekly Price Action, But Is There More? appeared first on NewsBTC.

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