BTCUSDT - Bitcoin replicates bullish fractals
Updated
Bitcoin price has tested $42 000 support level recently. There was panic in public chats and people claimed bearish market started. However few hours later BTCUSDT bounced back and the most important is the fact that the bounce happened with low trading volume, hence very few market players were selling at these levels. Such behavior can be a signal of accumulation phase beginning
April 25th Fractal:
Taking a closer look at Bitcoin's price action on April 25th we can see a similar picture to current chart. There was falling wedge with formed central accumulation range. The wedge bottom was retested twice and further bounces happened with small trading volume just as now. There was also replication of RSI oversold fractal around bounce area which also happens now at long term time frame charts
February 28th Fractal:
The same price action as before: RSI is at oversold edge, the price is at the bottom of the wedge while trading volume is low Bitcoin bounces and breaking the pattern upward.
Conclusion:
The most probable scenario: we have the same fractal as on February 28th and April 25th. Before these accumulation and distribution phases were connected with too low option contracts strike price. This month we can link the fractal to Musk's Twitter activity. Although there is high probability of sharp decrease to the cyan falling wedge in case current breakthrough attempt fails.
We think Bitcoin should go back to $50 000 - $51 000 range within next few days. Current period is also great for altcoins recovering
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
April 25th Fractal:
Taking a closer look at Bitcoin's price action on April 25th we can see a similar picture to current chart. There was falling wedge with formed central accumulation range. The wedge bottom was retested twice and further bounces happened with small trading volume just as now. There was also replication of RSI oversold fractal around bounce area which also happens now at long term time frame charts
February 28th Fractal:
The same price action as before: RSI is at oversold edge, the price is at the bottom of the wedge while trading volume is low Bitcoin bounces and breaking the pattern upward.
Conclusion:
The most probable scenario: we have the same fractal as on February 28th and April 25th. Before these accumulation and distribution phases were connected with too low option contracts strike price. This month we can link the fractal to Musk's Twitter activity. Although there is high probability of sharp decrease to the cyan falling wedge in case current breakthrough attempt fails.
We think Bitcoin should go back to $50 000 - $51 000 range within next few days. Current period is also great for altcoins recovering
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Note
Reuters released manipulation article about China's willingness to ban cryptocurrency exchanges. This is a fake news the article header is not correct, China wants to review law about regulation and control of manipulation activities at exchangesPeople panic sold and hence we are at the second Red scenario
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