More

    Bitcoin Breakout Beyond $50K Brings Bull Market Fractal Back In View

    Bitcoin price is back above $50,000 and its return to the key resistance level has brought a potential bull market fractal back into focus. The bullish fractal in question suggests that another leg up in the crypto bull cycle is coming, matching the epic 2013 rally grand finale.
    If the potentially repeating price pattern playing out similarly isn’t quite enough to convince, two separate technical indicators on monthly timeframes also appear to match the conditions that prompted one of the largest rallies in the cryptocurrency’s history.
    Is A Clean Break Of $50K The Trigger To The Final Leg Up In Crypto?
    Bitcoin price is back retesting $50,000 and while the level itself might be a clear phycological barrier due to the rounded price around halfway to most long-term targets, it also happens to be the median of the asset’s logarithmic growth curve.
    The logarithmic growth channel has held the cryptocurrency within its boundaries for its entire existence, containing each bubble and supporting each bust.

    If Bitcoin passes above the median, things could move quickly | Source: BLX on TradingView.com
    Past bull market cycles have always concluded in the red zone, and the fact that the top cryptocurrency by market cap never made it there is the best argument for why a peak hasn’t yet occurred.
    Related Reading | Weekly Bitcoin Momentum Cross Bullish For First Time Since March 2021
    Whether or not the bull market has ended is heavily debated, but with Bitcoin back around $50,000 an answer should be near.
    Past performance isn’t indicative of guaranteed future results, but beyond Bitcoin brushing up against the log channel median, there are also a number of other factors that match up almost perfectly.
    Bitcoin Fractal Resembles 2013, Momentum And Relative Strength Also Similar
    Comparing price action isn’t often enough to convince most analysts, especially if other market conditions are different. However, the conditions surrounding the 2013 final leg up and the current state of the 2021 cycle are also eerily similar.
    During both rallies, Bitcoin paused after passing above the log median, fell back to the 1.618 golden ratio Fib extension level, and then made a successful attempt at touching the red upper boundary of the log channel.

    The similarities between the two cycles are stacking | Source: BLX on TradingView.com
    The Relative Strength Index on monthly timeframes also is behaving similarly, with Bitcoin just a few grand away from blasting back into bull market territory – a zone it spent very little time in comparative to the 2017 bull market.
    The RSI making a double top with a lower high to form a bearish divergence would signal the end to the bull run.
    Related Reading | Why An Ongoing Bullish Bitcoin “Retest” Might Result In New Highs
    The LMACD, the log-based version of the MACD, a momentum tool, also is exhibiting a similar upward turn after a near crossover. Such a move is distinctly bullish, and often results in a powerful upside move.
    The bullish conditions could propel Bitcoin price beyond the log channel median, and toward the red zone of the channel. Targets for the end of the cycle would be upwards of $125,000 based on the current location of the upper boundary, but as time progresses this peak gradually moves higher.
    Markets are cyclical, and history often repeats. When it doesn’t, it still often rhymes. And while past performance doesn’t guarantee future results, according to Sir John Templeton, the four most expensive words in investing are “this time it’s different.”
    Will Bitcoin blast off toward $125,000 and higher from here?

    The similarities between #Bitcoin in 2013 and 2021 continue to grow. Peak will be in red. Currently around $125,000. I tend to think $144,000 when it’s all said and done. pic.twitter.com/4IU504uxPt
    — Tony “The Bull” Spilotro (@tonyspilotroBTC) August 23, 2021

    Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
    Featured image from iStockPhoto, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 47,546.00
    ethereum
    Ethereum (ETH) $ 3,417.08
    cardano
    Cardano (ADA) $ 2.37
    tether
    Tether (USDT) $ 1.00
    binance-coin
    Binance Coin (BNB) $ 412.18
    xrp
    XRP (XRP) $ 1.07
    solana
    Solana (SOL) $ 144.00
    polkadot
    Polkadot (DOT) $ 33.77
    dogecoin
    Dogecoin (DOGE) $ 0.243240
    usd-coin
    USD Coin (USDC) $ 1.00
    avalanche-2
    Avalanche (AVAX) $ 65.21
    terra-luna
    Terra (LUNA) $ 35.04
    binance-usd
    Binance USD (BUSD) $ 1.00
    chainlink
    Chainlink (LINK) $ 28.29
    uniswap
    Uniswap (UNI) $ 24.64
    litecoin
    Litecoin (LTC) $ 181.67
    bitcoin-cash
    Bitcoin Cash (BCH) $ 627.41
    algorand
    Algorand (ALGO) $ 1.96
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 47,569.00
    cosmos
    Cosmos (ATOM) $ 34.15
    matic-network
    Polygon (MATIC) $ 1.39
    internet-computer
    Internet Computer (ICP) $ 56.29
    filecoin
    Filecoin (FIL) $ 84.81
    stellar
    Stellar (XLM) $ 0.322249
    ftx-token
    FTX Token (FTT) $ 63.14
    tron
    TRON (TRX) $ 0.105976
    vechain
    VeChain (VET) $ 0.113403
    ethereum-classic
    Ethereum Classic (ETC) $ 57.10
    theta-token
    Theta Network (THETA) $ 6.37
    dai
    Dai (DAI) $ 1.00
    compound-ether
    cETH (CETH) $ 68.54
    tezos
    Tezos (XTZ) $ 6.25
    eos
    EOS (EOS) $ 5.37
    elrond-erd-2
    Elrond (EGLD) $ 250.99
    okb
    OKB (OKB) $ 18.68
    pancakeswap-token
    PancakeSwap (CAKE) $ 21.69
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.190588
    aave
    Aave (AAVE) $ 364.88
    monero
    Monero (XMR) $ 262.69
    quant-network
    Quant (QNT) $ 349.74
    iota
    IOTA (MIOTA) $ 1.68
    cdai
    cDAI (CDAI) $ 0.021695
    bitcoin-cash-abc-2
    Bitcoin Cash ABC (BCHA) $ 237.80
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022257
    ecash
    eCash (XEC) $ 0.000234
    staked-ether
    Lido Staked Ether (STETH) $ 3,394.54
    shiba-inu
    Shiba Inu (SHIB) $ 0.000008
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.437988
    the-graph
    The Graph (GRT) $ 0.825240
    near
    Near (NEAR) $ 8.45