Bitcoin’s recent price action has made it incredibly unclear as to where the cryptocurrency could be positioned to move next, with its recent drop below $10,000 suggesting that bulls do not have enough strength to surmount the resistance that exists around this price level.
In the near-term, Bitcoin’s bullish reaction to its recent drop to lows of $9,200 seems to suggest that further upside is imminent, although it has not yet catalyzed enough buying pressure to rally back up to the five-figure price region.
One bullish possibility that could mean intense upwards momentum is imminent is the fact that Bitcoin is currently repeating an eerily similar pattern to that seen last year prior to its recent rally.
Bitcoin Mirrors Bullish Fractal, Suggesting Intense Upside is Imminent
At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,700, which marks a notable climb from daily lows of $9,500.
Bitcoin’s bullish response to these daily lows and its massive climb from weekly lows of $9,200 that were set during the crypto’s “flash crash” selloff seen on Wednesday seems to suggest that bulls do have some notable strength despite its inability to hold above $10,000.
In order for bulls to further extend their upwards momentum, it is imperative that they push the crypto back above the resistance it faces around $10,000, as a rejection here could signal that bears are in firm control of the market.
In the near-term, one bull-favoring factor that could bolster buyers is the fact that the cryptocurrency is currently mirroring the price action seen in November of 2019, when the crypto declined by roughly 10% before starting its massive 2020 uptrend.
Galaxy, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, while also musing the recently formed golden cross BTC was able to post.
“Not many posts about Golden-Cross anymore but why? This is when it gets really interesting. We are currently mirroring ’19 in terms of price decrease after the GoldenCross. Stats: Nov 2019 – 9,80% decrease -> 170% increase. Feb 2020 – 9,04% decrease -> ?? increase. #Bullish,” he noted.
Not many posts about Golden-Cross anymore but why? This is when it gets really interesting
We are currently mirroring ’19 in terms of price decrease after the GoldenCross
Stats:
Nov 2019 – 9,80% decrease -> 170% increase
Feb 2020 – 9,04% decrease -> ?? increase#Bullish$BTC pic.twitter.com/Sg4x7GHdP4— Galaxy (@galaxyBTC) February 21, 2020
The coming few days and weeks should offer insight into the significance of this pattern, as any further momentum could confirm that this is an accurate fractal, which would be highly bullish for Bitcoin.
