This 2014 Bitcoin Fractal Could Predict the Upcoming Correction

This 2014 Bitcoin Fractal Could Predict the Upcoming Correction
фото показано с : beincrypto.com

2020-5-14 02:20

On May 7, the Bitcoin price reached a high of $10,067 and initiated a sharp decrease. The price movement around this decrease is very similar to that in January 2014.

After reaching a low of $8,117 on May 10, the Bitcoin price began an upward move that is still ongoing. This upward move also fits with the January 2014 fractal, as noted by well-known crypto trader @CryptoCapo_. He tweeted a BTC chart that notes the similarities of these two movements. If the fractal continues to be followed, BTC has already begun a correction that will continue in the medium-term.

Source: Twitter

He also noted the similarities in the magnitude of the upward and downward movements.

Both did a 160% pump and ended with a ~20% drop. $BTC

In this article, we will take a closer look at these two movements to see if more similarities arise and what they would mean for the future movement.

Side-by-Side Comparison

Both movements are shown in the image below, with the 2014 one being shown in the upper portion of the chart while the current one is in the lower one. Indeed, the rate of increase during the upward move preceding the high was identical, and so was the decrease when measuring the first drop.

Besides these, there are other similarities, more specifically that prior to reaching the bottom the price generated three lower highs and that the upward move retraced nearly 100% relative to the preceding high.

Bitcoin Chart By Trading View 2014 Movement

In the 2014 movement, the rally ended at the 0.786 Fib level of the previous decrease and was confirmed with a breakdown from an ascending support line. Afterwards, the price validated this line as resistance and continued its downward movement.

After 50 days, the price had lost all of the gains it made during the upward move that followed the slope of this ascending support line. Relative to the upward move that lasted only 19 days, this gives us a ratio of 2.63.

Current Movement

The current movement has been stronger than that in 2014, since the price initially moved way above the 0.786 fib level, even if it has decreased below it since. Furthermore, the ascending support line is still intact.

If the fractal continues to be followed, BTC will break down from this ascending support line and validate it as resistance afterwards.

If the May 7 high proves to be the top, then the upward move has lasted for 55 days.

Bitcoin Chart By Trading View

Using the 2.63 ratio from the previous section, we arrive at a low of $4,500 on September.

The post This 2014 Bitcoin Fractal Could Predict the Upcoming Correction appeared first on BeInCrypto.

origin »

Bitcoin (BTC) на Currencies.ru

$ 95560.89 (-0.08%)
Объем 24H $27.874b
Изменеия 24h: -0.80 %, 7d: -2.84 %
Cегодня L: $95313.23 - H: $96282.9
Капитализация $1894.578b Rank 1
Цена в час новости $ 9404.53 (916.12%)

bitcoin price decrease may 2014 january reaching

bitcoin price → Результатов: 126


Bitcoin Price Remains Bullish As Monthly Stochastic Sits Above 80, Here’s Why

The Bitcoin price has struggled to break above the $100,000 threshold decisively over the past four weeks, largely fluctuating within the $90,000 to $100,000 range. This correction and lackluster price action have caused a degree of bearish sentiment among traders, with some speculating that Bitcoin might have already reached its peak for the current cycle. […]

2025-1-15 18:30


Extremely Bullish 88-Day Structure Appears On Bitcoin Price Chart After Hitting $105,000 ATH

The Bitcoin price has continued its foray above the $100,000 threshold and is currently trading around new all-time highs. Following its recent surge to an all-time high (ATH) above $106,000, the Bitcoin price has played out an interesting pattern on the 1-day candlestick timeframe, which points to an extremely bullish outlook for the leading cryptocurrency.

2024-12-16 11:30


Are Bitcoin Whales Still Holding For Higher Profit? This On-Chain Signal Suggests So

The Bitcoin price performance in 2024 is one for the history books, with the premier cryptocurrency crossing the $100,000 mark for the first time ever. However, hitting this milestone opened the door to another conversation — when will the market top be in? As a result, several predictions of the Bitcoin price top have emerged […]

2024-12-15 12:30