BTC Fractal Calls for $30K, While Stock To Flow Points to $100K
Bitcoin's (BTC) price seems to be following a very unique fractal pattern that suggests Bitcoin's price could hit the 30k support level by the end of the year. If BTC's price follows the same path it had during the first half of the year traders, should expect another pullback before the smart money will get back into the market, but that may not be the case.
2021 Fractal Pattern
In technical analysis, a fractal pattern is reoccurring price action that is self-similar and is repeated again. For example, if we compare the rally from this summer low with the rally from mid-January, the price structure looks very similar but on a smaller scale.
The price analogy seems quite compelling, and it anticipates that we're on the verge of a downside breakout, similar to the downside breakout below the considerable psychological number of $50,000 that happened in mid-May and sent the price of the most valuable cryptocurrency towards the $30,000 low.
We're currently in the same spot, but this time BTC's price is above the $40,000 support and ready to break to the downside, the same way it did in mid-May.
RSI Momentum
Additionally, the RSI oscillator has printed bearish momentum readings which favor the bears. At the same time, BTC's price has struggled to regain the 200-day moving average, and while we're trading below the SMA, the trend remains bearish.
Other Side of the Story
The stock-to-flow model that many traders believe in suggests that BTC will reach $100,000 by the end of this year. Whether we will see a break to the downside or a renewed bull run remains to be seen.
October and November have been historically the best months for Bitcoin and the crypto market in general. If history were to repeat itself we can expect a large increase in the next two months.
Looking forward: The bears would need a daily break and close below the considerable round number of $40,000, which will open the door for the 2021 Bitcoin fractal to be repeated again. On the other hand, if the bears cannot achieve this in a timely manner, the stock-to-flow model will probably turn out to be accurate, and Bitcoin will indeed reach $100,000 this year.
2021 Fractal Pattern
In technical analysis, a fractal pattern is reoccurring price action that is self-similar and is repeated again. For example, if we compare the rally from this summer low with the rally from mid-January, the price structure looks very similar but on a smaller scale.
The price analogy seems quite compelling, and it anticipates that we're on the verge of a downside breakout, similar to the downside breakout below the considerable psychological number of $50,000 that happened in mid-May and sent the price of the most valuable cryptocurrency towards the $30,000 low.
We're currently in the same spot, but this time BTC's price is above the $40,000 support and ready to break to the downside, the same way it did in mid-May.
RSI Momentum
Additionally, the RSI oscillator has printed bearish momentum readings which favor the bears. At the same time, BTC's price has struggled to regain the 200-day moving average, and while we're trading below the SMA, the trend remains bearish.
Other Side of the Story
The stock-to-flow model that many traders believe in suggests that BTC will reach $100,000 by the end of this year. Whether we will see a break to the downside or a renewed bull run remains to be seen.
October and November have been historically the best months for Bitcoin and the crypto market in general. If history were to repeat itself we can expect a large increase in the next two months.
Looking forward: The bears would need a daily break and close below the considerable round number of $40,000, which will open the door for the 2021 Bitcoin fractal to be repeated again. On the other hand, if the bears cannot achieve this in a timely manner, the stock-to-flow model will probably turn out to be accurate, and Bitcoin will indeed reach $100,000 this year.
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