Analysts came to the conclusion that the dynamics of the price of Bitcoin is similar to the behavior of quotations in May 2019. When, after a pullback, prices resumed their growth and reached a maximum of 2019.
Famous traders also tweet about the similarity with the 2019 fractal. According to traders, the price will repeat last year’s scenario.
At the moment, Bitcoin has re-crossed the $ 35,500 mark and returned to the levels of the end of June, after opening July with a decline to $ 32,000. The United States celebrates Independence Day today, and tomorrow, traditional exchanges, including those trading bitcoin futures, will be closed.
Similarities between 2019 and 2021 Bitcoin fractals
So, there are several similarities between Bitcoin’s current behavior and the 2019 fractal.
As analyst Yashu Gola notes, Bitcoin formed part of a pattern that ended with a rise in the rate at the end of 2019 – beginning of 2020. Then in December the price collapsed to $ 6,500, causing the intersection of the 50- and 200-day moving averages or the formation of the “death cross”. At the same time, Bitcoin held above the 50-week moving average. And the bears’ attempts to push through it were unsuccessful. Bitcoin subsequently quickly recovered to the 61.8% Fibonacci extension. Drawn from a high of around $ 14,000 to a low of $ 6,500. At the same time, a series of lower lows appeared on the chart. While the Relative Strength Index (RSI), reflecting the presence of momentum, set higher lows, indicating a weakening bearish trend.
In 2021, Bitcoin corrected from $ 65,000 to support on the 50-week moving average of around $ 30,000, and the death cross reappeared on the chart. TradingShot analyst notes that the occurrence of a similar bullish divergence with lower lows and higher lows on the RSI, as well as the presence of support at the 50-week moving average, could trigger the market again to the 61.8% Fibonacci extension. In this case, the Bitcoin price may return to the $ 47,500 – 50,000 zone.
A more interesting question for traders if this scenario is executed is whether it will become a bullish trap, from which the price will go lower. PlanB analyst, known for adapting the stock-to-flow (S2F) model to the Bitcoin market, notes that the cryptocurrency closed June below his predicted trajectory, and the next six months will be decisive for confirming or refuting the model, as it already did in January 2019. According to his prediction, Bitcoin should not drop below $ 28,000 this month, return to at least $ 47,000 in August and then continue to climb above $ 100,000.
Ethereum at the same time rose to a two-week high above $ 2,300. Growth for the week is 25.5% against 7.5% for bitcoin. Binance Coin is trading above $ 300 again despite the negative surrounding the world’s largest crypto exchange. A number of altcoins from the top 100 added 30-40% over the week, and the Compound DeFi project token grew by 72%. The bitcoin dominance index continued to decline and reached 45%.