🔥 Bitcoin Copying May-July '21 Bear Market? Fractal Analysis
When looking at the current state of the market, it's clear that there are some clear comparable movements of the current market when compared with the summer bear market of 2021.
1: A sharp initial drop with a huge bear wick. The massive drop got bought up quickly, but lacked follow-up and the bears took the overhand after a few days.
2: Several tops and bottoms with high volatility following each other. Bulls and bears fighting for control. Note that both the tops and bottoms are getting lower, sowing that bears are slightly winning the battle. Now we had 4 tops, the Summer-21 bear market saw 3 tops.
3: Strong reversal from the bulls in two waves. Bulls failed to break the high of the first correction after the initial dump at point 1. See dotted line.
4: Bulls can't breach the dotted resistance, bears push prices down. Bulls find support at the last bottom before the strong reversal at point 3, see dotted support. This support is tested twice.
What will happen further remains to be seen. For clarity, I've copied the bars from Summer-21 and pasted them on the current chart, yellow bars. So, if we were to follow the Summer-21 fractal, it would mean that there's still more pain to come, potentially targeting the area between 42k-45k.
Be aware that the current market is copying the Summer-21 fractal, but in a much shorter time span. So it could take another 1-2 weeks of bearish price action before we see a reversal like in July-21.
Where do you think we're heading?
1: A sharp initial drop with a huge bear wick. The massive drop got bought up quickly, but lacked follow-up and the bears took the overhand after a few days.
2: Several tops and bottoms with high volatility following each other. Bulls and bears fighting for control. Note that both the tops and bottoms are getting lower, sowing that bears are slightly winning the battle. Now we had 4 tops, the Summer-21 bear market saw 3 tops.
3: Strong reversal from the bulls in two waves. Bulls failed to break the high of the first correction after the initial dump at point 1. See dotted line.
4: Bulls can't breach the dotted resistance, bears push prices down. Bulls find support at the last bottom before the strong reversal at point 3, see dotted support. This support is tested twice.
What will happen further remains to be seen. For clarity, I've copied the bars from Summer-21 and pasted them on the current chart, yellow bars. So, if we were to follow the Summer-21 fractal, it would mean that there's still more pain to come, potentially targeting the area between 42k-45k.
Be aware that the current market is copying the Summer-21 fractal, but in a much shorter time span. So it could take another 1-2 weeks of bearish price action before we see a reversal like in July-21.
Where do you think we're heading?
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